Askume, Sep 9 – The US Federal Bureau of Investigation (FBI) said on Monday that losses from cryptocurrency-related fraud and scams will be higher than in 2023 as scammers increasingly exploit the speed and irreversibility of digital asset transactions, with losses rising % in 2022, totaling more than $5.6 billion.
Why is this important?
Cryptocurrencies such as bitcoin and ethereum are growing in popularity as token prices have hit new highs and exchange-traded funds tracking their prices have hit U.S. markets this year.
However, this growth has also increased the use of cryptocurrencies by criminals, the FBI’s Internet Crime Complaint Center said in a new report.
The FBI said that while cryptocurrency transactions are recorded on public blockchains, allowing law enforcement to easily trace funds, the money is often rapidly transferred overseas and US authorities may face lax anti-money laundering laws and other hurdles in some jurisdictions.
From a numerical point of view
The report states that cryptocurrency-related investment scams in particular were responsible for 71% of all cryptocurrency-related losses last year. Call center scams and government impersonation scams caused 10% of the losses.
The FBI received the most complaints about cryptocurrency from people over the age of 60, who lost more than $1.6 billion.
Key Quotes
“Because cryptocurrencies eliminate the need for financial intermediaries to verify and facilitate transactions, criminals can exploit these features to support illicit activities such as theft, fraud, and money laundering,” the FBI said.
