Crypto fraud losses surge to $5.6B in 2023: these states were hit hardest

Crypto fraud losses surge to $5.6B in 2023: these states were hit hardest

Sep 12,2024

Fraudsters swindled people out of an eye-popping amount of money using cryptocurrency-related schemes in 2023, according to the FBI. When it came to such losses in the U.S., the agency found some states were hit harder than others.

Total estimated losses from cryptocurrency scams reached $5.6 billion in 2023, the FBI’s Internet Crime Complaint Center (IC3) said this week . That was an increase of 45% from the prior year.

Bad actors most frequently turned to schemes like investment, tech support, personal data breach and extortion for cryptocurrency fraud last year, according to the IC3.

Of the 50 states, the District of Columbia and America’s territories, California was where the most losses were reported from fraud schemes using some type of cryptocurrency, at roughly $1.155 billion.

STOLEN CRYPTO VIA HACKING INCREASED 110% IN FIRST HALF OF 2024 OVER 2023

The data showed there was a more than $743 million margin between reported cryptocurrency fraud losses in the Golden State and those recorded by people in the second-place state.

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Including California , the five states where the IC3 said Americans were scammed out of the most money included:

Crypto fraud losses surge to $5.6B in 2023: these states were hit hardest
State Capitol Aerial view of California Capitol.
Crypto fraud losses surge to $5.6B in 2023: these states were hit hardest
In an aerial view, the downtown skyline is seen on April 11, 2023 in Austin, Texas. The city of Austin has been ranked as the top destination of U.S. job markets for the second consecutive year, according to data collected by The Wall Street Journal.
Crypto fraud losses surge to $5.6B in 2023: these states were hit hardest
Battery Park is seen at the southern tip of Manhattan on May 19, 2021 in New York City.
Crypto fraud losses surge to $5.6B in 2023: these states were hit hardest
New Jersey took home the top spot for the best state to work remotely.

Michael Nordwall of the FBI noted in the IC3’s cryptocurrency fraud-focused report that the "decentralized nature of cryptocurrency , the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals, while creating challenges to recover stolen funds."

ATM BITCOIN SCAMS ARE ON THE RISE

The whopping $5.6 billion in cryptocurrency fraud losses were linked to the over 69,000 total complaints that the IC3 fielded specifically about such ploys in 2023.

"While the number of cryptocurrency-related complaints represents only about 10 percent of the total number of financial fraud complaints, the losses associated with these complaints account for almost 50 percent of total losses," Nordwall said.

In 2023, the IC3 received more than 880,400 complaints across all types of internet crime. Those complaints amounted to over $12.5 billion in losses.


Original article source: Crypto fraud losses surge to $5.6B in 2023: these states were hit hardest