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 FBI’s Internet Crime Complaint Center (IC3) has released its 2023 report showing a significant increase in cryptocurrency-related fraud and the use of digital assets in cybercrime.
Cryptocurrency investment scams
FBI data shows a significant increase in cryptocurrency-related investment scams, with losses rising from $2.57 billion in 2022 to $3.94 billion in 2023, a 53% increase.
These scams often lure individuals with the promise of high returns on digital currency investments. The report says these scams are becoming increasingly sophisticated, with cybercriminals taking advantage of the digital asset industry’s growth over the years to lure victims.
Data shows that victims of all age groups are being targeted by cryptocurrency investment fraud, with complaints significantly 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.
It also highlights the need to verify payments and purchase requests through secure methods other than email communications to reduce the risk of falling victim to these schemes.
Cryptocurrency use increases in cybercrime
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. #加密货币 #投资欺诈