Crypto scams in the United States have surged to unprecedented levels in 2024, with a staggering 66% increase in reported losses. According to a new report from the FBI’s Internet Crime Complaint Center (IC3), Americans lost a record $9.3 billion to crypto-related fraud in 2024, a significant jump from the $5.6 billion in losses reported in 2023. The report highlights how fraudsters have become more sophisticated in their methods, exploiting the growing popularity of digital assets to deceive individuals.

Seniors: The Primary Targets

One of the most alarming findings in the FBI’s report is the disproportionate impact of crypto scams on senior citizens. A significant portion of the losses—around $2.8 billion—was suffered by Americans aged 60 and above. In total, 33,000 complaints came from seniors, many of whom were targeted by scammers preying on their lack of familiarity with cryptocurrencies and digital finance.

Scammers often employ specific tactics to deceive elderly victims, taking advantage of their trust and limited understanding of digital assets. Among the most common methods are crypto ATM scams, where fraudsters trick seniors into withdrawing funds from their bank or retirement accounts and sending the money through crypto ATMs. These scams are particularly insidious because they prey on the victims’ desire to protect or grow their savings, with scammers promising high returns or investment opportunities in digital assets.

The FBI noted that in 2024, at least 2,700 senior citizens were duped in this manner, resulting in losses of approximately $107 million. With older adults often having fewer opportunities to recoup lost funds, this demographic remains particularly vulnerable to fraud.

Fake Investments Drive Most Losses

Another driving force behind the surge in crypto scam losses is fraudulent investment schemes. The FBI’s report revealed that more than $1.6 billion was lost to fake investment opportunities in 2024. These scams typically offer high returns on non-existent or high-risk crypto projects, with scammers using deceptive tactics to make their offerings appear legitimate. Fraudsters often create convincing websites, fake endorsements, and fabricated investment reports to lure in victims, especially those new to the world of cryptocurrency.

This increase in fake investments can be linked to the broader rise of crypto popularity and the growing number of inexperienced investors entering the market. While digital assets like Bitcoin and Ethereum have become mainstream, many new investors are unfamiliar with the risks involved, making them prime targets for scams that promise quick profits.

The evolution of these scams has made it increasingly difficult for individuals to distinguish between legitimate and fraudulent opportunities. Scammers often exploit social media, celebrity endorsements, and online platforms to give their fake investments an air of legitimacy, leading many people to invest without doing sufficient research.

The Scope of the Problem

The FBI’s IC3 received over 140,000 complaints related to internet crimes in 2024, with crypto fraud making up a significant portion of that number. Authorities have warned that the actual scale of crypto-related losses may be even higher, as many victims fail to report scams, either due to embarrassment or a lack of awareness about how to report such crimes.

The FBI emphasized that underreporting and outdated reporting systems may prevent an accurate assessment of the true impact of crypto scams. As fraudsters continue to refine their methods, individuals must be more vigilant in spotting and avoiding these increasingly sophisticated scams.

Staying Safe and Protecting Your Investments

In light of these findings, the FBI has urged the public to be cautious when dealing with crypto-related opportunities. They advise avoiding unsolicited investment offers and conducting thorough research before engaging in any crypto transactions. The most important rule remains: if an offer seems too good to be true, it likely is.

As the crypto industry continues to grow, awareness and education on the risks of crypto scams will be crucial in helping individuals protect themselves from fraud. With the right precautions, investors can navigate the world of cryptocurrencies without falling prey to scams that have become increasingly prevalent and damaging.