Federal Bureau of Investigation cryptocurrency fraud report 2023

In 2023, the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) reported a significant rise in financial fraud involving cryptocurrencies such as bitcoin, ether, and tether. The IC3 received over 69,000 public complaints about cryptocurrency fraud, resulting in estimated losses exceeding $5.6 billion.

The report highlights that investment scams are the most pervasive form of cryptocurrency exploitation, responsible for nearly 71% of all cryptocurrency-related losses. Call centre frauds, including tech support scams and government impersonation schemes, accounted for about 10% of these losses. The decentralised nature of cryptocurrencies, coupled with the speed and irreversibility of transactions, makes them particularly attractive to criminals and poses substantial challenges in recovering stolen funds.

IC3 plays a central role in aggregating and analysing these complaints to identify trends and develop strategies to combat fraud. Timely and accurate complaint reporting is crucial for aiding law enforcement in their investigations.