The FBI has launched an initiative, Operation Level Up, to combat cryptocurrency investment fraud, a growing crisis that has cost victims billions of dollars. 

According to the report, this proactive approach has already saved thousands of people from devastating financial losses, with an estimated $285 million prevented from falling into the hands of scammers.

Crypto investment fraud, often known by the derogatory term "pig butchering," involves scammers building online relationships with victims before persuading them to invest in seemingly legitimate crypto ventures. These fraudulent schemes promise high returns but ultimately result in victims losing their entire savings, retirement funds, or even homes.

James Barnacle, deputy assistant director of the FBI’s Criminal Investigative Division, emphasized the urgency of addressing the issue, noting that it is a significant and growing problem affecting many Americans. 

Through Operation Level Up, the FBI identifies individuals actively being scammed and intervenes in real time by calling victims directly. In some cases, victims were prepared to invest millions before the FBI's warning stopped them in their tracks.

One victim planned to invest an additional $1 million before receiving a call from the FBI, while another was about to sell her home to invest $500,000. Thanks to timely intervention, they were spared from losing their assets. Some victims were so emotionally impacted by the scams that they required direct support and even suicide intervention through the FBI's Victim Services Division.

These scams are sophisticated operations run by professional fraudsters who target individuals through social media, dating sites, networking platforms, and investment groups. Victims tend to be tech-savvy individuals between the ages of 30 and 60 who are actively seeking investment opportunities. 

The FBI’s Internet Crime Complaint Center (IC3) reported that in 2023 alone, cryptocurrency investment fraud resulted in $3.9 billion in reported losses, a figure that is likely much higher due to underreporting.

Scammers use highly convincing fake investment platforms to lure victims, showing fabricated account balances and false profits to encourage continued investment. In some cases, victims are allowed to withdraw small amounts of money initially to build trust, only to find themselves locked out when they try to access larger sums.

Beyond saving victims, Operation Level Up helps the FBI track and disrupt the criminal organizations orchestrating these scams. The agency collaborates with domestic and international partners to dismantle the financial and infrastructure networks enabling fraud. The FBI also shares information about illicit domains and fraudulent accounts with the private sector to mitigate further damage.

The FBI urges the public to exercise caution and take a moment before making financial decisions. Scammers rely on creating a false sense of urgency to pressure victims into quick action. By pausing to research investment opportunities and verifying online contacts, individuals can avoid becoming the next target.

For those who suspect they have been scammed, the FBI advises contacting their banks immediately and filing a complaint with IC3 at ic3.gov. Reaching out to trusted friends and family can also help prevent others from falling victim to similar schemes.