Americans reported more than $5.6 billion in losses involving cryptocurrency during 2023, according to the FBI’s Internet Crime Complaint Center. The figure was about 45% higher than in 2022 and came from 69,468 complaints in which cryptocurrency was used in a fraud or as a payment mechanism.
The data does not mean that all cryptocurrency activity was fraudulent. It measures complaints submitted to IC3 and categorised as cryptocurrency-related; it is neither a complete count of every victim nor a measurement of the entire crypto market.
Investment schemes caused most of the loss
Cryptocurrency investment fraud accounted for approximately $3.96 billion, or about 71% of the reported total. Many schemes begin through a social network, messaging app, dating service or unsolicited investment group. A fraudster builds trust, directs the victim to a convincing platform and may initially allow a small withdrawal before demanding larger deposits, taxes or release fees.
The FBI has warned about “liquidity mining” and work-from-home scams as well as long-term confidence schemes sometimes called pig-butchering fraud. The common feature is not a particular coin but deception, manipulated account displays and payment systems that make funds difficult to recover.
States with the largest reported losses
California recorded the highest aggregate loss at roughly $1.16 billion. Texas followed with about $411.9 million, Florida with $390.2 million, New York with $317.3 million and New Jersey with $179.4 million. Population, wealth, reporting behaviour and exposure all influence those totals, so the ranking does not by itself show that a resident of one state had the highest individual risk.
Cryptocurrency-related complaints represented about 10% of financial-fraud complaints received by IC3 but nearly half of the associated losses. The report also listed 840 complaints from India with reported losses of approximately $44.1 million, illustrating that the problem extended beyond the United States.
Why the numbers are likely incomplete
Some victims do not report because they are embarrassed, unaware of the fraud or uncertain which authority to contact. Conversely, a complaint is an allegation at the time of submission and is not automatically a judicial finding. IC3 statistics are useful for patterns and scale, but they should not be described as audited losses across every exchange and wallet.
Steps that reduce risk
Investors should be suspicious of guaranteed returns, pressure to act quickly, private messaging groups and platforms that require an additional payment before a withdrawal. Searching a company name is not enough because professional-looking websites and paid reviews can be manufactured. Registration, named management, custody arrangements and independent withdrawal tests should be checked before sending substantial funds.
A victim should stop sending money, preserve wallet addresses, transaction hashes, messages and bank records, contact the relevant exchange or bank immediately and file a report with IC3 and local law enforcement. Reporting quickly can help investigators trace a transaction, although recovery is never guaranteed. Recovery agents who demand advance payment may be running a second scam against the same victim.
Source: FBI IC3 2023 Cryptocurrency Fraud Report.
