September 10, 2024 at 10:33AM
The FBI’s annual report on crypto-related cybercrime highlights a grim reality, with over $5.6 billion in losses in the US in 2023, a 45% increase from the previous year. Those aged 60 and over are the most vulnerable, falling victim to investment scams promising huge returns from cryptocurrency. The FBI urges reporting of such crimes to combat them effectively.
Key Takeaways from Meeting Notes:
1. The FBI’s annual report on crypto-related cybercrime revealed that total losses in the US due to such crimes exceeded $5.6 billion in 2023, marking a 45 percent increase from the previous year.
2. More than 69,000 complaints were reported to the FBI’s Internet Crime Complaint Center (IC3) in 2023, with a significant portion coming from individuals aged 60 and over, highlighting the vulnerability of older generations to internet scams.
3. Investment scams were identified as the primary driver of the sharp increase in crypto-related losses, with losses from scams with a nexus to cryptocurrency amounting to $3.9 billion. These scams promise significant returns but instead result in losses for victims.
4. Confidence-enabled investment scams, where criminals establish trust with victims through various platforms before introducing the topic of cryptocurrency investment, were particularly prominent in 2023. The criminals spend considerable time convincing victims to trust them before ultimately stealing their money.
5. Liquidity mining schemes, which promise daily returns and require victims to hand over access to their wallets, were also highlighted as a type of crypto scam to be cautious of.
6. The data on ransomware incidents and reported losses seemed faulty, with ransomware leading to reported losses of $59.6 million, a figure that raised skepticism given the typically higher costs associated with ransomware attacks.
These takeaways provide a clear understanding of the increasing prevalence of crypto-related scams and the need for greater vigilance and reporting to address these criminal activities.