AMERICANS LOST $9.3B TO CRYPTO FRAUD IN 2024 — FBI

The digital frontier, once hailed as a beacon of innovation and financial freedom, has increasingly become a playground for sophisticated scammers.In a chilling revelation, the Federal Bureau of Investigation's (FBI) Internet Crime Complaint Center (IC3) released a report detailing a staggering $9.3 billion lost by Americans to cryptocurrency fraud in 2025.This represents a shocking 66% increase from the $5.6 billion reported in the previous year, signaling a dramatic escalation in the prevalence and sophistication of crypto-related crimes. The Federal Bureau of Investigation (FBI) received over 149K complaints regarding crypto fraud in 2025. The Bureau recorded $9.3 billion losses spread across various crypto-related investment scams, extortion, ATM and kiosks, among others.The IC3 received over 140,000 complaints referencing cryptocurrency, highlighting the widespread nature of this issue.This eye-opening figure underscores the urgent need for increased awareness, enhanced security measures, and a more proactive approach to combating the rising tide of digital asset-related scams. A new report from the FBI s Internet Crime Complaint Center (IC3) reveals that Americans lost a shocking $9.3 billion to cryptocurrency fraud in 2025. That s a 66% increase compared to the $5.6 billion lost in 2025.Whether you're a seasoned crypto investor or simply curious about the technology, understanding the landscape of these frauds is crucial to protecting your assets and staying safe in the evolving digital world.So, let’s dive into the specifics of this alarming trend and explore how you can safeguard yourself from becoming another statistic.

The Alarming Rise of Cryptocurrency Scams

The recent FBI report paints a grim picture of the escalating crypto fraud landscape. According to the FBI, crypto-related fraud reached an all-time high of a little over $9.3 billion in 2025, a 66% increase from the previous year's $5.6 billion. While the data is concerning across all demographics, the impact on older Americans stands out in the data.The $9.3 billion lost represents a significant blow to individual investors and the overall credibility of the cryptocurrency market. Americans lost a record $9.3B to crypto-related crimes last year, according to a recent Federal Bureau of Investigation report, marking a 66% surge from the year before amid digital assets'This surge in losses is attributed to a variety of factors, including the increasing popularity of digital assets, the relative anonymity they offer, and the inherent complexity that can make it difficult for even experienced investors to discern legitimate opportunities from scams.

It's crucial to recognize that not all cryptocurrency investments are inherently fraudulent.However, the anonymity and decentralized nature of these assets create fertile ground for bad actors to exploit unsuspecting individuals.The lure of high returns, coupled with a lack of regulatory oversight, has made crypto a prime target for scammers.

What Contributes to Crypto Fraud?

• Growing Popularity: As more people invest in cryptocurrency, the larger the potential pool of victims becomes.
• Anonymity: The pseudonymous nature of blockchain transactions makes it difficult to trace and recover stolen funds.
• Complexity: The technical aspects of cryptocurrency can be confusing, allowing scammers to exploit investors’ lack of understanding.
• Lack of Regulation: The relatively unregulated nature of the cryptocurrency market creates opportunities for fraudulent schemes to flourish.

Types of Cryptocurrency-Related Crimes

The FBI report identified a range of crypto-related crimes contributing to the staggering losses.Understanding these different types of scams is crucial for recognizing and avoiding them. According to the report released on April 23, the IC3 received more than 140,000 complaints referencing cryptocurrency in 2025, resulting in roughly $9.3 billion in losses. The bureau reported that individuals over the age of 60 had been the most affected by crypto-related fraud, with roughly 33,000 complaints and $2.8 billion in losses.Here are some of the most prevalent categories:

Investment Scams

Investment scams are among the most lucrative forms of crypto fraud.These schemes often involve promises of guaranteed returns or insider information, luring investors into parting with their funds. According to the report released on April 23, the IC3 received more than 140,000 complaints referencing cryptocurrency in 2025, resulting in roughly $9.3 billion in losses. The bureau reportedExamples include:

• Ponzi Schemes: These schemes pay returns to early investors using money from new investors, rather than from actual profits. Americans reported a record $9.3 billion in losses to cryptocurrency-related crimes in 2025, according to a report by the Federal Bureau of Investigation's (FBI) Internet Crime Complaint CenterThe scheme collapses when it becomes impossible to attract new investors.
• Pyramid Schemes: Similar to Ponzi schemes, pyramid schemes rely on recruiting new members to generate profits for those at the top of the pyramid.These schemes are unsustainable and inevitably collapse.
• Pump and Dump Schemes: Scammers artificially inflate the price of a cryptocurrency through false or misleading statements, then sell their holdings at a profit, leaving other investors with significant losses.
• Romance Scams: Scammers create fake online profiles to build relationships with victims, eventually convincing them to invest in cryptocurrency.

Extortion and Blackmail

Extortion and blackmail schemes involve threatening victims with harm or the release of sensitive information unless they pay a ransom in cryptocurrency.These schemes can be particularly devastating, as they often target vulnerable individuals.

ATM and Kiosk-Related Fraud

Cryptocurrency ATMs and kiosks can be vulnerable to fraud, particularly if they lack robust security measures.Scammers may use these machines to launder money or conduct other illicit activities.Phishing attacks that direct users to fraudulent crypto ATMs are also common.

Phishing Attacks

Phishing attacks involve deceptive emails, websites, or messages designed to trick victims into revealing their private keys, login credentials, or other sensitive information.These attacks can be highly sophisticated, making it difficult to distinguish them from legitimate communications.A common example involves mimicking a popular exchange to steal user credentials.

Impersonation Scams

These types of scams involve bad actors pretending to be someone they are not.This could range from impersonating a celebrity to impersonating a customer service representative from a company you use.In either case, the aim is to decieve you into giving up sensitive information that can be used to steal your cryptocurrency.

The Impact on Older Americans

While crypto fraud affects individuals of all ages and backgrounds, the FBI report highlighted the disproportionate impact on older Americans.Individuals over the age of 60 filed approximately 33,000 complaints, resulting in a staggering $2.8 billion in losses.There are several reasons why older adults are particularly vulnerable:

• Lack of Familiarity with Technology: Older adults may be less familiar with cryptocurrency and online security measures, making them more susceptible to scams.
• Trusting Nature: Older adults may be more trusting of others, making them easier to manipulate.
• Targeted by Scammers: Scammers often target older adults, knowing that they may have significant savings or assets.

It's crucial for family members and caregivers to educate older adults about the risks of crypto fraud and help them take steps to protect themselves.Encouraging skepticism of unsolicited investment opportunities and providing assistance with online security can significantly reduce their vulnerability.

Understanding the 66% Increase in Crypto Losses

The 66% surge in crypto fraud losses from 2024 to 2025 is a cause for serious concern.This dramatic increase reflects a combination of factors, including:

• Increased Awareness of Cryptocurrency: The more people know about and are interested in crypto, the more targets for scams are available.
• Sophistication of Scams: Scammers are constantly evolving their tactics, making it increasingly difficult for investors to detect fraud.
• Economic Factors: During times of economic uncertainty, people may be more likely to fall for scams promising high returns.
• Global Reach: Crypto scams can originate from anywhere in the world, making it difficult for law enforcement to track down and prosecute perpetrators.

The exponential growth in losses underscores the need for a multi-faceted approach to combating crypto fraud, including increased regulation, enhanced education, and improved collaboration between law enforcement agencies.

Protecting Yourself from Cryptocurrency Fraud

While the statistics on crypto fraud are alarming, there are steps you can take to protect yourself from becoming a victim.Knowledge is your first line of defense.Remember to research and never invest more than you can afford to lose.Here are some practical tips:

Do Your Research

Before investing in any cryptocurrency or project, conduct thorough research to understand the technology, the team behind it, and the potential risks involved.Look for white papers, reviews, and independent analyses.Check the team's background on LinkedIn and other professional sites.Legitimate projects will have readily available and verifiable information.

Be Wary of Unsolicited Offers

Be extremely cautious of unsolicited investment offers, particularly those promising guaranteed returns or insider information.Legitimate investment opportunities are rarely presented in this manner.Never click on links from unknown sources or provide personal information to unverified contacts.If it sounds too good to be true, it probably is.

Use Strong Passwords and Two-Factor Authentication

Protect your cryptocurrency accounts with strong, unique passwords and enable two-factor authentication (2FA) wherever possible. 2FA adds an extra layer of security, requiring a second verification code in addition to your password.Consider using a password manager to generate and store complex passwords securely.

Store Your Cryptocurrency Securely

Choose a secure wallet to store your cryptocurrency.Hardware wallets, also known as cold storage wallets, are generally considered the most secure option, as they store your private keys offline, protecting them from hacking attempts.Software wallets are convenient, but they are more vulnerable to online attacks.Research different wallets and choose one that meets your security needs.It is best practice to store large amounts of cryptocurrency in cold storage.

Be Skeptical of Social Media and Online Forums

Be cautious of information and advice shared on social media and online forums.Scammers often use these platforms to promote fraudulent schemes and manipulate investors.Verify information from multiple sources before making any investment decisions.Don't blindly trust recommendations from strangers online.

Avoid Sharing Your Private Keys

Never share your private keys with anyone, under any circumstances.Your private keys are like the keys to your bank account.Anyone who has access to your private keys can access and control your cryptocurrency.Always keep your private keys secure and offline.

Report Suspicious Activity

If you suspect you have been targeted by a crypto scam, report it to the FBI's Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC).Reporting the scam can help law enforcement track down and prosecute perpetrators, and it can also help protect others from becoming victims.

The Role of Regulation in Combating Crypto Fraud

The relatively unregulated nature of the cryptocurrency market has contributed to the rise of crypto fraud.Many experts believe that increased regulation is necessary to protect investors and prevent fraudulent schemes.

Potential regulatory measures include:

• Licensing and Registration Requirements: Requiring cryptocurrency exchanges and other businesses to obtain licenses and register with regulatory agencies.
• Anti-Money Laundering (AML) Regulations: Implementing stricter AML regulations to prevent the use of cryptocurrency for illicit activities.
• Investor Protection Measures: Establishing rules and regulations to protect investors from fraud and market manipulation.
• Increased Oversight and Enforcement: Providing regulatory agencies with the resources and authority to oversee the cryptocurrency market and enforce regulations.

However, regulation is a double-edged sword.Too much regulation could stifle innovation and drive legitimate businesses offshore.Finding the right balance between protecting investors and fostering innovation is a key challenge for policymakers.

What to Do If You've Been Scammed

Discovering you've been a victim of crypto fraud can be devastating.Here's what to do:

1. Report the Crime: File a complaint with the FBI's IC3 and the FTC.Provide as much detail as possible.
2. Contact Your Bank: If you used a credit card or bank account to purchase cryptocurrency, contact your bank or credit card company immediately to report the fraud and attempt to recover your funds.
3. Secure Your Accounts: Change all your passwords and enable 2FA on all your cryptocurrency accounts.
4. Seek Legal Advice: Consult with an attorney specializing in cryptocurrency law to explore your legal options.
5. Be Wary of Recovery Scams: Be cautious of individuals or companies offering to recover your stolen cryptocurrency for a fee.These are often scams themselves.

Recovering stolen cryptocurrency is often difficult, but taking these steps can improve your chances of recovering your funds and preventing further losses.

The Future of Cryptocurrency and Fraud Prevention

Despite the alarming rise in crypto-related fraud, the future of cryptocurrency isn't necessarily bleak.As the industry matures and regulatory frameworks evolve, we can anticipate seeing more sophisticated measures being implemented to combat fraudulent activities.These may include more robust KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols, enhanced security infrastructure, and more efficient fraud detection systems.Furthermore, increased public awareness campaigns and educational initiatives are crucial in empowering individuals with the knowledge and tools necessary to navigate the crypto space safely.

The development and adoption of more secure blockchain technologies can also play a pivotal role in preventing fraud.Technologies like zero-knowledge proofs and secure multi-party computation can enhance privacy and security while still allowing for transparent and verifiable transactions.Moreover, collaborations between law enforcement agencies, cryptocurrency exchanges, and cybersecurity firms are essential to track down and prosecute perpetrators of crypto fraud.

Conclusion: Staying Vigilant in the Digital Age

The FBI report detailing $9.3 billion in losses to Americans due to crypto fraud in 2025 serves as a stark reminder of the risks associated with investing in digital assets.The 66% increase in losses compared to the previous year underscores the urgent need for increased awareness, enhanced security measures, and a more proactive approach to combating these crimes.While cryptocurrency offers exciting opportunities for innovation and financial growth, it's crucial to approach it with caution and skepticism.Remember to do your research, be wary of unsolicited offers, use strong passwords, and store your cryptocurrency securely.By staying vigilant and informed, you can protect yourself from becoming a victim of cryptocurrency fraud and navigate the digital world with greater confidence.Key takeaways include:

• Crypto fraud is a serious problem: Losses reached $9.3 billion in 2025, a 66% increase from the previous year.
• Older Americans are particularly vulnerable: Individuals over 60 are disproportionately affected by crypto scams.
• Knowledge is your best defense: Research before investing, be skeptical of unsolicited offers, and use strong security measures.
• Report suspicious activity: If you suspect you've been targeted by a scam, report it to the FBI and FTC.
• Regulation is needed: Increased regulation can help protect investors and prevent fraud.

The digital world is constantly evolving, and so are the tactics of scammers.Staying informed, being cautious, and taking proactive steps to protect yourself are essential for navigating the cryptocurrency landscape safely.Invest wisely, stay vigilant, and safeguard your financial future.