As Bitcoin reaches new highs this year, the FBI has observed a sharp increase in cryptocurrency-related scams, including fraudulent investment schemes and employment scams.
Special Agent David Paniwozik of the FBI’s Baltimore branch noted the growing trend, saying: “Criminals see cryptocurrencies as a quick and easy way to make money. Unfortunately, many investors are still unfamiliar with the technology, making them prime targets.”
One of the key challenges, Paniwozik said, is the seamless and borderless nature of cryptocurrency transactions. “Whether it’s $1 or billions of dollars, money can be instantly transferred from a U.S.-controlled wallet to an offshore wallet,” he explained. Scammers often set up fake cryptocurrency exchanges, convincing victims that their investments are growing rapidly or demanding crypto payments to “unlock” lucrative job offers.
The FBI warns that these scams are becoming increasingly sophisticated and difficult to detect, capitalizing on the public's excitement about cryptocurrencies and their potential for high returns.
In addition to investment scams, the FBI is seeing an increase in employment scams involving cryptocurrency. Significant losses have been reported in Maryland alone, with reported losses rising from $32,033 in 2023 to a staggering $3.8 million between January and October 2024. The average person in Maryland loses between $15,000 and $20,000 in these types of scams, Paniwozik said.
According to the FBI’s 2023 Cryptocurrency Fraud Report, cryptocurrency-related complaints account for just 10% of all financial fraud reports, but nearly 50% of total monetary losses.
The FBI advises potential investors and job seekers to be careful when dealing with cryptocurrency-related opportunities. Key tips include verifying the legitimacy of exchanges, being skeptical of promises of guaranteed high returns, and avoiding cryptocurrency payments for job offers.
*This is not investment advice.
