FBI Saves Over 4,300 Victims from Crypto Investment Scams

FBI saves 4,300+ victims from crypto scams, preventing $285M in losses. Learn how Operation Level Up combats rising crypto fraud risks.

The FBI has successfully saved more than 4,300 victims from cryptocurrency investment scams through its proactive initiative, Operation Level Up. The joint law enforcement operation led to an estimated $285 million in loss prevention, which demonstrates the increasing risks of crypto fraud.

Such scams are initiated through real-looking and trustworthy digital contacts. Scammers use different strategies to develop trust relationships with their victims in professional, friendly or romantic contexts. After building trust with victims, they present investments in cryptocurrency which seem legitimate by offering attractive profit possibilities. All connections along with investment opportunities present in such schemes prove to be false. Extreme situations occur when victims suffer the loss of their life savings as well as retirement funds together with the loss of their houses.

Deputy Assistant Director James Barnacle from the FBI Criminal Investigative Division declared that crypto scam cases have emerged as a significant problem. Scammers affect numerous American people, according to his statement. The FBI has designated scams dealing with these fraudulent relationship schemes as “pig butchering” among fraud types.

$3.9 Billion Lost to Crypto Scams in 2023, FBI Reports

The tracking abilities of Operation Level Up allow agents to detect possible scam victims. The identification process leads agents to directly contact victims to prevent them from investing additional funds. The FBI prevented a victim from making a $1 million investment shortly before the potential transaction. The victim stayed away from making the $500,000 investment when the FBI reached out to her regarding the scam.

Crypto scammers possess high levels of skills to trick people by creating deceptive investment platforms that offer fake early returns to win victims’ trust. Tech-savvy middle-aged individuals between 30 to 60 years old make up the majority of victims who seek investment possibilities.

The Internet Crime Complaint Center of the FBI recorded $3.9 billion in cryptocurrency-based investment fraud losses during 2023. Unreported cases of fraud represent only a small portion of the total number of crypto investment scams that exist.

The FBI encourages the public to perform a thorough evaluation of investment choices before committing to any transactions. Operation Level Up continues its work with domestic and international partners to disrupt fraudulent operations while protecting the public from future scams.