- Over $5.6 billion lost to crypto scams in 2023.
- Investment scams accounted for $4 billion of these losses.
- Be cautious of unsolicited messages and fake websites.
In 2023, cryptocurrency scams caused Americans to lose a staggering $5.6 billion, representing a significant 45% increase from the previous year.
The majority of these losses stemmed from investment scams, which alone accounted for $4 billion. Fraudsters often exploit the allure of high returns with minimal risk, deceiving victims into investing in fraudulent platforms that eventually rob them of their money.
How to Avoid Falling Victim to Rising Crypto Investment Scams
Investment scams typically involve cyber criminals who make enticing promises of high returns on investments with little risk. These scams often begin with messages through dating apps, social media, or email, where the fraudster gains the victim’s trust before leading them to fake investment websites. Once on these platforms, victims see their supposed investments grow, but when they try to withdraw their money, they are unable to, or are asked to pay additional fees.
To protect yourself, be cautious of unsolicited communication from unknown sources claiming to represent reputable companies or agencies. Verify the legitimacy of any investment platform by checking for domain name discrepancies and website errors. Promises of quick and easy wealth are typically too good to be true, and you should be wary of any such offers.
If you suspect you’ve been targeted by a crypto scam, report it to the FBI’s Internet Crime Complaint Center. This will help authorities track and combat these fraudulent activities more effectively.
Staying vigilant and informed is crucial to avoid falling prey to cryptocurrency scams. Always verify the legitimacy of any investment opportunity and report suspicious activities to protect yourself and others from financial harm.
“If an investment opportunity sounds too good to be true, it likely is.” – FBI Report
