Crypto Investment Scams Surge in the US

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The Federal Bureau of Investigation (FBI) has estimated that investment fraud involving cryptocurrencies will account for the majority of investment losses in 2023, making it a major problem in the United States. According to research, investment losses involving cryptocurrency climbed by 53% in 2023 over the previous year.

Emphasis on Romance Scams

According to a recent FBI study, cryptocurrency investment losses increased by 53%, from $2.57 billion in 2022 to around $3.94 billion in 2023. This alarming statistic accounts for around 86% of total investment fraud losses in the country, indicating a surge in cryptocurrency-related frauds targeting unwary victims.

The FBI stressed that a rising number of people are falling prey to cryptocurrency fraud, enticed by promises of high returns on their investments. These schemes are frequently designed to dupe victims with enticing return expectations, but the fraudsters flee with the collected funds.

Romance scamming is one of the most popular sorts of crypto fraud that disturbs people, in which criminals establish fictitious online identities to earn victims’ confidence and affection before enticing them to give bitcoin and then leaving without a trace.

In December 2023, Blockchain analytics firm Chainalysis estimated that romance scams alone resulted in a probable loss of at least $374 million in cryptocurrency for the year. According to research, over 324,000 individuals fell prey to such schemes in 2023, and other tactics, including as phishing scams, were used to drain around $295 million from cryptocurrency wallets.

Extending Beyond US Borders

The alarming trend of Americans falling prey to cryptocurrency fraud extends beyond the United States, as other nations across the world face similar concerns. In April 2023, the Australian Competition and Consumer Commission (ACCC) stated that in 2022, Australians lost $221.3 million Australian dollars ($146.9 million) to investment schemes that used cryptocurrency as payment. This figure represents a massive 162.4% rise over 2021, emphasizing the worldwide scale and severity of the problem.

As cryptocurrency use grows and becomes more widespread, it is clear that individuals must take prudence while engaging in investing activities.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.

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