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The Federal Bureau of Investigation (FBI) reported that its Internet Crime Complaint Center received more than 69,000 complaints in 2023 from the public, claiming $5.6 billion in losses due to cryptocurrency fraud.

According to the FBI report published on Sept. 9, scammers have used various methods to steal funds from the victims such as pretending to be tech supports and government officials, pig butchering scams, and investment frauds. 

The report highlighted that investment fraud was the most reported cryptocurrency scheme in 2023, stealing $3.9 billion from investors. 

FBI Director Christopher Wray claimed that scams targeting investors who use crypto are skyrocketing in “severity and complexity.” Advising investors on how to avoid falling for these scams, Wray stated:

“The best way to help stop these crimes is for people to report them to ic3.gov, even if they did not suffer a financial loss. The information allows us to stay on top of emerging schemes and criminals’ use of the latest technologies, so we can keep the American public informed and go after those who commit these crimes.”

The $3.9 billion in losses from investment scams represents a 45% increase compared to the losses in 2022. Apart from investment frauds, bad actors stole approximately $215.82 million from the victims through romance scams, also known as pig butchering, making it the fifth-largest scam by total losses.

Pig butchering is a crypto scam where the scammer establishes a relationship with the victim. 

Once the trust has been established, the scammer persuades the victims to invest in fraudulent crypto projects, promising to generate high income. When the victim invests their funds, the scammer usually runs away with their money. 

With the number of rising scams, The FBI warned investors to verify the validity of any investment opportunity strangers or long-lost contacts offer on social media websites. 

Read more: FBI recovers $5M worth of USDT from pig butchering scammers