FBI Prevents Nearly $285 Million in Crypto Fraud Losses in 2024
The FBI has intensified its efforts against cryptocurrency fraud through Operation Level Up, preventing nearly $285 million in potential losses from scams between January 2024 and January 2025. Key actions include:
- Direct intervention with over 4,300 individuals at risk of losing funds.
- Prevention of significant transactions, such as one investor's planned $1 million transfer.
Common scams include romance fraud and pig butchering, where perpetrators build trust before pushing victims to invest in fake crypto platforms. The FBI advises the public to evaluate financial decisions carefully and resist manipulation through their campaign, "Take a Beat."
$5 Billion Lost in 2023—FBI Freezes Millions, Fraud Still Soars
Despite these efforts, crypto fraud remains rampant, with Americans losing over $5 billion to scams in 2023. The FBI managed to freeze $6 million in stolen funds last September, but the scale of fraud is concerning:
- IC3 reported $3.9 billion in crypto-related investment fraud losses.
- Many victims do not report or significantly underreport their losses, suggesting actual figures are higher.
- 3,200 new complaints are filed monthly with IC3.
Investment Scam: Illusion of Profit, Reality of Loss
Fraudsters employ sophisticated tactics, often masquerading as financial experts on various platforms. They create an illusion of high returns, leading victims to believe their investments are successful. Notable points include:
- Victims see simulated profits and can make small withdrawals, building trust.
- When attempting to withdraw more substantial amounts, victims find they are blocked.
“Victims are shown terrific investment returns... However, it’s a dummy account, and when victims try to withdraw, they are denied,” stated James Barnacle of the FBI.
The FBI emphasizes the importance of education and vigilance in combating these scams. Many victims initially distrust the agency's warnings, thinking they are being targeted again. The FBI provides verification methods to help build trust.