According to the latest Internet Crime Report by the Federal Bureau of Investigation (FBI), cryptocurrency-related fraud is on the rise, with a projected 53% year-on-year increase by 2023. The report released this Wednesday highlights that investment scams involving cryptocurrencies have increased from $2.57 billion in 2022 to $3.94 billion in 2023. These scams aim to lure targets with promises of lucrative investment returns.
Data from the Internet Crime Complaint Center (IC3) shows that total losses from online fraud surpassed $12.5 billion in 2023, marking a 22% increase from 2022. Scams involving business email compromises resulted in total losses of $2.9 billion in 2023.
The report also points out that email scammers are turning to cryptocurrencies to carry out their schemes, with an increasing number of malicious actors collecting funds from victims through exchanges and other third parties. Fraudsters are increasingly utilizing custodial accounts held by financial institutions for cryptocurrency transactions or third-party payment processors, or having targeted individuals directly send funds to these platforms, where the funds are quickly dispersed. Two-factor authentication is cited as a useful additional security layer.
Following the Federal Bureau of Investigation's initial warning of a surge in digital asset investment fraud one year prior, plans related to cryptocurrencies have increased. In March 2023, the agency warned the public that illicit actors were increasingly using dating apps, social media websites, online platforms, and messaging services to seek victims.
However, blockchain analysis firm Chainalysis believes that despite the FBI's findings, funds stolen through cryptocurrency investment scams have been decreasing globally in recent years. Analysts at Chainalysis noted in their latest crime report: "Our on-chain indicators indicate that global scam revenue has been declining since 2021. We believe this aligns with a longer-term trend where scams are most successful when markets are rising, prosperity is high, and people feel they've missed out on a quick path to riches."
Like the Federal Bureau of Investigation (FBI), Chainalysis also acknowledges that not all criminal activities will be reported, particularly romantic scams that may go unnoticed. However, the company maintains that overall, fraudulent activities are decreasing. Chainalysis analysts wrote, "While the increase in reporting — at least in the United States — is a positive sign, we still believe that insight into romance scams, in particular, is underreported. We assume that the true harm of scams is greater than what is reported to the FBI and what our on-chain indicators show, but overall, considering broader market dynamics, fraudulent activity is decreasing."
In conclusion, with the continued development of the cryptocurrency market, cryptocurrency fraud is on the rise, highlighting the need for regulatory and preventive measures to protect investor interests and network security.
For more analysis, please follow Aibit's media account for real-time updates! This article is for reference only, does not represent any position, and is not intended as investment advice. Investment is risky, caution should be exercised.
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