FBI: Crypto investment scams up 183% to $2.57 billion in 2022
- Losses incurred by investors as a result of cryptocurrency investment scams increased.
Compared to $907 million in 2021, cryptocurrency investment fraud reached a record $2.57 billion in 2022, an increase of 183% annually.
About 90% of the $3.31 billion lost to online investment scams in 2022 came from cryptocurrency losses, which accounted for about 25% of all money lost to online scams and scams.
Americans lost a total of $10.3 billion to Internet fraud in 2022, compared to $6.9 billion in 2021.
The $10.3 billion lost in 2022 is the highest amount ever stolen by online fraudsters and scammers. The FBI began collecting data on online fraud through its Internet Crime Complaint Center (IC3) in 2000.
Similarly, complaints of cryptocurrency-based fraud reached record highs during the year, with the term “cryptocurrency wallet” appearing in a large majority of complaints.
FBI data on cryptocrime
The 2022 Internet Crime Report was released by the Federal Bureau of Investigation (FBI) last week. The agency’s Internet Crime Complaint Center (IC3), which “serves as a public resource for submitting reports of cyberattacks and incidents,” according to the agency, provided the data used to construct the report.
Investment fraud was the costliest scheme reported to IC3 in 2022. Investment fraud charges rose 127%, from $1.45 billion in 2021 to $3.31 billion in 2022, according to the FBI, which also stated:
The volume of allegations involving cryptocurrency investment fraud increased by 183%, from $907 million in 2021 to $2.57 billion in 2022.
The number of victims and financial losses suffered by investors as a result of cryptocurrency investment scams increased at an unprecedented rate. The most targeted age group reporting this type of scam is people between the ages of 30 and 49, according to the survey, and many victims have taken on significant debt to compensate for losses from these bogus investments.
The FBI also listed common scams involving cryptocurrency investments that will occur in 2022, including those involving mining for liquidity, hacked social media accounts, impersonating celebrities, real estate agents, and jobs.
Distribution of investment fraud
According to the FBI, criminals targeted and tricked their victims in a variety of ways.
Several fraudsters gave their victims access to fake liquidity mining platforms. Once victims connected their bitcoin wallets to the aforementioned platform, fraudsters would immediately and silently withdraw their funds.
Some scammers used hijacked social media accounts to present fake investment proposals to victims’ friends and family, while other scammers used fake celebrities to promote similar scams.
The FBI, meanwhile, claimed that fraudsters are becoming more sophisticated and have recently begun targeting bitcoin exchanges and their clients.
Cryptocurrency theft by fraudsters was not limited to online schemes; some of which mimicked real estate investment offerings. Others were also deceived via fake job openings.
Conclusion
Although criminal groups engaged in investment fraud have been dismantled in some cases, much remains to be done.
Nevertheless, it is obvious that cybercrime, whatever its form, is a significant problem.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
