Among the most affected were older Americans, with individuals aged 60 and above suffering the largest losses, totaling nearly $1.6 billion. The report found that the majority of the financial damage was caused by investment fraud, which accounted for about 71% of the total crypto-related complaints. These schemes typically lure victims into making investments through misleading promises of high returns, only for their funds to vanish. Another significant share of scams involved impersonation fraud, where callers or online agents posed as government representatives or trusted figures.
Confidence schemes were particularly rampant, with the FBI warning that scammers often avoid face-to-face interactions with their victims, making it difficult for individuals to validate the legitimacy of the person offering investment opportunities. Once victims are roped into these schemes, recovering lost funds becomes nearly impossible.
The use of cryptocurrency ATMs has also presented unique opportunities for fraudsters. The FBI recorded 5,500 cases in 2023 that involved ATMs, resulting in losses exceeding $189 million. These ATMs, often chosen by criminals for their anonymity, were involved in a range of schemes, including extortion and romance frauds. Victims were tricked into depositing money into ATMs, making tracking the perpetrators a challenge for law enforcement.