The FBI says that 2023 was a report yr for cryptocurrency fraud, with whole losses exceeding $5.6 billion, primarily based on practically 70,000 studies obtained by way of the Web Crime Criticism Middle (IC3).
This marks a forty five% enhance in losses in comparison with the earlier yr, pushed primarily by funding fraud, which accounted for 71% of the whole cryptocurrency losses. Different varieties of fraud contributing to the statistics embody tech help scams, name heart fraud, and authorities impersonation.
The overwhelming majority of the reported losses ($4.8 billion) had been incurred by U.S. residents, adopted by Cayman Islands ($196M), Mexico ($127M), Canada ($72M), the UK ($59M), India ($44M), and Australia ($25M).
Within the U.S., California is the state that suffered the very best damages, recording losses of $1,155,000,000 adopted by Texas ($412M), Florida ($390M), and the New York ($317M).
Supply: FBI
FBI’s report highlights varied fraud developments that dominated 2023. In what considerations funding fraud, the principle developments revolved round variations of courting apps {and professional} networking platforms resulting in “pig butchering” websites.
There are additionally liquidity mining scams the place victims are promised excessive returns for staking their property in a liquidity pool.
Criminals in 2023 additionally created pretend gaming functions claiming to be primarily based on blockchain applied sciences. They promised gamers cryptocurrency rewards to trick them into connecting their wallets.
Fraudsters additionally used cryptocurrency restoration scams the place they aim victims of earlier scams, providing pretend restoration providers for stolen cryptocurrency. These schemes usually require upfront funds for retrieving misplaced funds.
How one can defend from cryptocurrency fraud
The IC3 report explains that cybercriminals goal cryptocurrency due to its decentralized nature, the existence of mechanisms that may assist obscure the cash hint, and the sufferer’s lack of ability to revert fraudulent transactions.
Cryptocurrency holders can defend themselves from fraud by following these suggestions:
- Be skeptical when met with “too good to be true” funding guarantees
- Confirm the legitimacy of funding platforms earlier than committing any funds.
- Ask your funding advisor to satisfy in individual, and deal with refusal as a crimson flag.
- Use separate cryptocurrency wallets for gaming and investments.
- Periodically test pockets permissions utilizing a trusted third-party token allowance checker device, and revoke entry the place needed.
- Keep away from liquidity mining swimming pools that don’t comply with cryptocurrency market fluctuations.
- Be cautious of personal restoration firms claiming potential to grab stolen cryptocurrency and requiring upfront funds.
- Independently confirm caller identities by calling firms again utilizing publicly out there contact data.
