According to the FBI's 2022 Elder Fraud Report, scammers have accelerated last year, particularly targeting those over 60, with increasingly sophisticated scams that many times involve cryptocurrency investments.
The report found that monetary losses from investment fraud have soared by more than 300%, more than any other type of fraud, primarily due to cryptocurrency investment scams. In fact, cryptocurrency losses climbed 350% across nearly every crime category tracked by the agency, including romance scams and identity theft. The types of cryptocurrencies used include Bitcoin, Ethereum, Litecoin, and Ripple.
“Cryptocurrencies are becoming the payment method of choice for all types of scams – SIM swapping, technical/customer support fraud, employment schemes, romance scams, and even some auction frauds,” the report states. “This is very common among investment scams, and every Victims' losses could amount to hundreds of thousands of dollars."
The FBI said it received 88,262 complaints last year from victims of fraud who were over the age of 60. These victims reported losses totaling $3.1 billion, an increase of nearly $1 billion from 2021. The report found that the average total loss per victim was $35,101, with 5,456 victims losing more than $100,000.
The FBI said it is working with the Department of Justice and law enforcement agencies in India and local Indian states to try to stem the tide of cyber financial crimes and transnational call center fraud.
Cryptocurrency scams surge, veteran investors prime targets
UK cryptocurrency scams surge 23%, young investors the main targets
Recently, Lloyds Bank, one of the four largest banks in the UK, stated that compared with the same period in 2022, reports of cryptocurrency investment scams from victims have surged by 23% this year.
According to a press release from Lloyds Bank, an increasing number of investors are facing the threat of falling victim to fraudulent schemes through false advertising posted on social media. The average loss per victim of cryptocurrency investment scams is $13,115 (£10,741), an increase from $8,562 (£7,010) the previous year. This exceeds losses from other consumer frauds, such as romance scams or purchase scams.
According to the report, individuals aged 25 to 34 account for a quarter of all crypto scam victims, making them the most commonly affected age group. The criminal organizations behind these scams have adapted their strategies to take advantage of emerging trends and trick more victims into giving up their money. Recently, their focus has expanded to include younger investors, attracted by the lure of quick wealth that comes with cryptocurrency trading.
