Beware of Cryptocurrency ScamsThe alarm, this time, comes directly from the FBI, the Federal Bureau of Investigation, the federal government police agency of the United States. Digital currencies, in fact, continue to represent a fertile ground for fraudulent activities, as highlighted in the latest report of the American federal agency. In 2023, the losses exceeded $5,6 billiona increase of 45% compared to the previous year. A worrying figure that highlights the growing vulnerability of savers.
Cryptocurrency Fraud: The Numbers of 2023
According to the Internet Crime Complaint Center report (IC3) of the FBI, in 2023, more than 69.000 reports of cybercrime and financial fraud were filed. Of these, the 10% involved cryptocurrency-related fraud, but these reports represent almost half of the value of total financial losses. The economic damage, equal to 5,6 billion dollars, testifies to the growing severity of the phenomenon, with a 45% increase compared to the 3,9 billion dollars lost in 2022.
Investment scams on the rise
The report highlights that most of the losses are linked to cryptocurrency investment scams, a sector that has recorded the highest number of complaints. Fraudsters use a wide range of schemes to deceive their victims, including fake tech support, romance scams, and impersonating government agencies. A very popular technique, called “pig slaughter“, involves the Building trust with victims via messaging apps, inducing them to invest large sums of money in fraudulent assets.
The Most Used Technique: The Bitcoin ATM Scam
In addition to investment-related fraud, another Fraudulent technique on the rise is the one that involves the Bitcoin ATMs. In 2023, $110 million in losses related to this scheme were reported, ten times the value of 2020. These scams they hit particularly older savers, with an increase in victims over the age of 60. Scammers convince victims to withdraw cash from their bank accounts and to deposit it into a Bitcoin ATM, using false pretenses of government or technical assistance.
Just in first half of 2024, losses from Bitcoin ATM scams have already exceeded 65 million dollars, confirming that this technique is becoming increasingly dangerous. Scammers manipulate the victims by tricking them into believing that their money is at risk and that the only way to protect it is to transfer it via cryptocurrency. Once the transfer is completed, victims have no way to recover the funds.
The FBI Intervention: The Creation of the Virtual Assets Unit
To combat the rise in cryptocurrency-related fraud, the FBI established a new unit dedicated: the Virtual Asset Unit (VAU). This specialized team is tasked with centralizing the FBI's cryptocurrency expertise, providing advanced technology tools, blockchain analysis, and training for the seizure of virtual assets. Working with the Department of Justice and other agencies, the VAU is committed to investigating and prosecuting those who use cryptocurrency to commit fraud.
The director of the FBI, Christopher wray, stressed theimportance of public collaboration in fighting these frauds: “The best way to help stop these crimes is to people report them on ic3.gov, even if they haven’t suffered a financial loss. The information allows us to stay abreast of emerging patterns and criminals’ use of the latest technology.”
How to Protect Yourself from Cryptocurrency Fraud
The FBI has provided some guidelines to help the public protect themselves from these increasingly sophisticated scams. Here are some basic tips:
- Do not give out personal information: do not provide sensitive data to unverified individuals, even if they seem trustworthy or familiar
- Verify authenticity: Do not trust unsolicited calls from people claiming to be representatives of companies or government agencies. Always verify authenticity by contacting the entity directly via officially published numbers
- Be wary of opportunities that are too tempting: If an investment seems too good to be true, it's probably a scam.
- Don't download suspicious apps: Always make sure the app you use to manage cryptocurrencies is legitimate
If you suspect fraud, the FBI encourages you to report the incident to Internet Crime Complaint Center (IC3) through ic3.gov website. Even if you haven't suffered any immediate financial loss, each report helps identify criminals and prevent further scams.
