Crypto Losses Continue To Surge Thanks To Fraud With Investors Losing Billions In 2023

Just when you thought the trend of crypto investments was fading out comes a new report that displays the downfall of investors thanks to fraud.

American residents continue to suffer losses worth billions thanks to crypto scams that have been rising as we speak. In just 2023 alone, investors lost a staggering $1.56 billion and that accounted for 15% of the total fraud losses arising around the globe.

It’s all thanks to bad actors such as cybercriminals whose main focus relies on attaining the greatest amount of crypto available today. Moreover, a recently published report coming from Surfshark explained how this might be the third year where we see crypto losses go above and beyond the billion-dollar mark, as shown by the FTC’s latest report on this front.

The losses arising per victim have continued to grow when we look at the recent past. In 2021 alone, each victim was losing close to $18k and that expanded to a staggering $28k.

Then seeing crypt responsible for being the main cause of frauds in the US last year opened up many people’s eyes further. Today, more than 55k individuals are impacted.

This puts crypto at the forefront as the second biggest type of monetary loss arising today after bank transfers.

In 2023, more than 50% of all losses due to fraud arose from different investments, and that included advice provided in this regard. As a whole, it was $829 million or nearly $34,000 for each victim involved.

Meanwhile, investment fraud came in after romance fraud schemes continued to peak and we saw more scams linked to businesses involved in imposter-related scams. That alone cost people $179 million and even $140 million.

The complete rise in these losses did plateau last year and it proved to be a slight deviation from the numbers we saw in 2022. And if such trends do continue to take shape next year as well, we can see how the future of such losses in terms of crypto can be a leading threat for many. This is why experts are signaling the alarm with the release of this new report.

So the next time you plan on investing in the crypto world, you might need to take more precautions because the consequences can be serious.

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