2023 FBI Internet Crime Report: Investment fraud dominates, with the majority related to cryptocurrencies

The Federal Bureau of Investigation (FBI) has released the "2023 Internet Crime Report", revealing that investment fraud has increased by 38%, rising from $33.1 billion to $45.7 billion, with cryptocurrency being the largest type of fraud.

Investment Fraud Dominates, Most Related to Cryptocurrency

In 2023, the Internet Crime Complaint Center (IC3) received a record number of complaints from the American public: 880,418 complaints were filed, with potential losses exceeding $12.5 billion. This represents a 10% increase in complaints and a 22% increase in losses compared to 2022.

Investment fraud once again became the highest-earning crime type tracked by IC3 in 2023. 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 53% growth.

In terms of age of victims, although there seems to be little difference in the number of complaints from those aged 30 and above, those aged 60 and above suffered the heaviest losses, totaling $3.4 billion, which is twice the $1.7 billion losses for those aged 50-59.

In terms of criminal patterns, besides investment fraud ranking first in terms of losses, Business Email Compromise (BEC) ranked second with losses as high as $29.5 billion. The impact of Ransomware attacks also rose again, bringing significant costs.

Note: BEC is a scam that targets businesses or individuals who collaborate with suppliers and/or make regular wire transfers. These elaborate scams are carried out by fraudsters through compromising email accounts and other forms of communication such as phone numbers and virtual meeting applications, implemented through social engineering or computer intrusion techniques.

FBI Enforcement Achievements

The FBI also outlined its enforcement achievements in the report. The FBI is committed to assisting online victims and cultivating partnerships. Its Recovery Asset Team (RAT) was established in 2018, streamlining communication with financial institutions and FBI field offices to freeze funds for victims. According to the report, the success rate is as high as 71%, freezing a total of $530 million in illicit funds.