According to the Federal Bureau of Investigations’ 2023 Cryptocurrency Fraud Report, the use of cryptocurrency (crypto) is on the rise and so is crypto fraud. In 2023, the FBI received more than 69,000 complaints related to crypto.  The bureau estimates that losses tied to crypto scams totaled more than $5.6 billion last year – a 45% increase over 2022.

In 2023, Florida residents reported more than 5,000 crypto scam complaints with the overwhelming majority of those tied to some crypto investment scam.

The FBI credits the rise of crypto scams to three reasons:

  • The decentralized nature of cryptocurrency eliminates the need for financial intermediaries to validate and facilitate transactions. As a result, criminals can exploit these characteristics to support illicit activity such as thefts, fraud, and money laundering.
  • Third parties do not sit between or authorize transactions, and transactions are irrevocable – meaning they cannot be reversed. Criminal actors can easily facilitate large-scale, nearly instantaneous cross-border transactions without traditional financial intermediaries that use anti-money laundering programs.
  • Cryptocurrency allows transfers of funds to exchanges overseas, making it difficult for US law enforcement to trace cryptocurrency that enters other jurisdictions, especially those with lax anti-money laundering laws or regulations.

If you are confused about cryptocurrencies or want to learn more, we invite you to check out What to Know About Cryptocurrency and Scams from the Federal Trade Commission.

So how can you avoid being a victim of a cryptocurrency scam?

  • Only scammers demand payment in cryptocurrency. No legitimate business will demand crypto over traditional methods.
  • Only scammers will guarantee big profits and zero risk. If it sounds too good to be true, it is.
  • Never mix online dating and investment advice. If you meet someone on a dating site or app, and they want to show you how to invest in crypto – that’s a scam.
  • Never click on a link in an unsolicited email or text message.

If you have been a victim of a crypto scam, report the fraud to the following agencies:

If you would like to invest in cryptocurrency, do you research and know what you are getting into. Learn how it works and understand the risks. And, above all, before you send money to anyone, search for the name of the company along with words like fraud, scam, or complaint and see what you find.

Still have questions? Please call or visit your Marine Bank banking center during business hours and we’ll be happy to assist you.