Cryptocurrency fraud cost Americans $5.6 billion in 2023: FBI report

The FBI's Internet Crime Complaint Center received over 69,000 complaints about cryptocurrency fraud in 2023, with estimated losses of over $5.6 billion.

The report found that "the exploitation of cryptocurrency was most pervasive in investment scams, where losses accounted for almost 71 percent of all losses related to cryptocurrency."

Call center frauds "accounted for about 10 percent of losses associated with cryptocurrency." Confidence and romance scams accounted for 3,749 complaints, while 8,630 complaints involved extortion.

Although the "blockchain" ledger system permanently records cryptocurrency transactions, "the decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals,” the report said.

The rapidity of cryptocurrency transfers, the report said, impedes recovery efforts.

"Once an individual sends a payment, the recipient owns the cryptocurrency and often quickly transfers it into an account overseas for cash out purposes," the report noted.

The report breaks down complaints and losses by the age of complainants. The over-60 demographic took the lead, with over 24% of complaints and roughly 29% of losses.

The largest share of complaints came from California, at 9,522, which also led losses at $1,155,315,595.