2023 FBI Cybercrime Report: Investment Fraud Dominates, Mostly Associated with Cryptocurrencies
The Federal Bureau of Investigation (FBI) has released the “2023 Internet Crime Report,” which reveals that investment fraud has grown by 38%, increasing from $3.31 billion to $4.57 billion, with cryptocurrency being the largest type of fraud.
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Investment Fraud Dominates, Mostly Related to Cryptocurrency
FBI Enforcement Achievements
The Internet Crime Complaint Center (IC3) received a record number of complaints from the American public in 2023, registering 880,418 complaints with potential losses exceeding $12.5 billion. Compared to 2022, the number of complaints increased by 10%, and losses increased by 22%.
In 2023, investment fraud once again became the highest amount among the tracked crime types by IC3. Losses from investment fraud increased from $3.31 billion in 2022 to $4.57 billion in 2023, a 38% increase. Among them, investment fraud involving cryptocurrency increased from $2.57 billion in 2022 to $3.94 billion in 2023, a growth of 53%.
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In terms of age groups affected, while the number of complaints seems relatively similar for those aged 30 and above, the losses are most significant for those aged 60 and above, reaching a staggering $3.4 billion, which is twice the $1.7 billion lost by those aged 50 to 59.
Regarding the types of crimes, in addition to investment fraud ranking first in terms of losses, the second-ranked Business Email Compromise (BEC) reached $29.5 billion. The impact of ransomware also rose again, bringing substantial costs.
Note: BEC is a scam targeting businesses or individuals who regularly conduct wire transfers with suppliers. These sophisticated scams are carried out by fraudsters through compromising email accounts and other forms of communication, such as phone numbers and virtual meeting applications, using social engineering or computer intrusion techniques.
The FBI also highlighted its enforcement achievements in the report. The FBI is committed to assisting internet crime victims and cultivating partnerships. Its Recovery Asset Team (RAT), established in 2018, has streamlined contact with financial institutions and FBI field offices to facilitate the freezing of funds for victims. According to the report, the success rate is as high as 71%, with a total of $530 million in illicit funds frozen.
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