Crypto Investment Scam Losses in U.S. Grew 53% to $3.94B in 2023: FBI

Losses from crypto investment scams in the U.S. totaled $3.94 billion in 2023, an increase of 53% compared to $2.57 billion in 2022, a new report by the Federal Bureau of Investigation (FBI) has said.

The overall investment frauds grew by 38% to $4.57 billion from $3.31 billion, according to the bureau's Internet Crime Report 2023. Crypto scams account for most of these frauds, highlighting the prominent role that cryptocurrency plays in this area of online crime.

"Fraudsters are increasingly using custodial accounts held at financial institutions for cryptocurrency exchanges or third-party payment processors, or having targeted individuals send funds directly to these platforms where funds are quickly dispersed," the report said.

Losses from investment scams became the most common internet crime in 2023, accounting for over a third of the total $12.5 billion, according to the report.

Read More: Alleged Crypto Investment Scam Worth $80M Sees Four People Charged With Money Laundering in U.S.