FBI cybercrime report reveals 53% year-over-year increase in U.S. cryptocurrency investment fraud

According to FBI data, investment fraud involving cryptocurrency will grow from $2.57 billion in 2022 to $3.94 billion in 2023, an increase of 53%.

The latest 2023 report from the FBI’s Internet Crime Complaint Center (IC3) shows a significant increase in fraud cases involving cryptocurrencies and the use of digital assets in cybercrime.

Cryptocurrency Investment Scam

According to FBI data, there has been a significant increase in cryptocurrency-related investment fraud cases. The loss will rise from US$2.57 billion in 2022 to US$3.94 billion in 2023, an increase of 53%.

These frauds often lure individuals by promising high returns on digital currency investments. According to a report, these scams have become more sophisticated, with cybercriminals taking advantage of the digital asset industry’s growth over the years to attract victims.

Data shows that people of all ages may become victims in cryptocurrency investment fraud cases, but complaints are mainly concentrated among individuals between the ages of 30 and 60.

The report highlights the importance of using security measures such as two-factor or multi-factor authentication to prevent this type of fraud.

Highlights the need for secure methods to verify payments and purchase requests in addition to email communications to reduce the risk of falling victim to these schemes.

In cybercrime, the use of cryptocurrencies increases

Reports also reveal an increase in the use of cryptocurrencies to facilitate the rapid transfer and dispersal of funds stolen through business email fraud (BEC) schemes.

BEC fraud involves the manipulation of email accounts to authorize fraudulent transactions, often resulting in victims suffering significant financial losses.

At the same time, there has been an increase in ransomware attacks that require payment in cryptocurrency to decrypt data. The report shows that ransomware complaints are growing at an annual rate of 18%, and reported losses have increased by 74%, totaling $59.6 million in 2023.

The report highlights that these attacks highlight the ongoing threat posed by cybercriminals to critical infrastructure sectors.

In response to the surge in cryptocurrency fraud, IC3’s Asset Recovery Team (RAT) plays a key role in reducing financial losses. RAT has a 71% success rate in freezing fraudulent transfers, successfully recovering more than $538.39 million of the $758.05 million reported losses in 2023.

According to the report, as cybercriminals continue to exploit the digital currency space, increased vigilance, improved cybersecurity measures and greater public awareness are critical. It added that collective efforts are needed to protect against the evolving threats of the digital age, especially in the expanding realm of digital assets.

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