Crypto Con: Unraveling the Surge of Investment Fraud in 2023

In 2023, the United States Federal Bureau of Investigation (FBI) highlighted a significant surge in cryptocurrency-related investment fraud, which amounted to $3.94 billion, marking a 53% increase from the previous year. This accounted for approximately 86% of all investment fraud losses in the nation, out of a total of $4.57 billion. The rise in crypto scams, such as romance scams and phishing attacks, has led to a growing number of victims being lured by promises of high returns on investments. Notably, in December 2023, Chainalysis reported that romance scams alone resulted in around $374 million in suspected stolen cryptocurrency. Similarly, phishing scams affected over 324,000 crypto users in 2023, leading to losses totaling approximately $295 million. This trend is not confined to the U.S. alone, as other countries, like Australia, have also witnessed a surge in crypto-related scams, indicating a global issue.