Pig butchering cost Americans $5.6 billion last year.
The term, used by scammers to describe crypto investment schemes, was especially apt in 2023, as losses increased 45% over the 2022 totals, according to a new report from the FBI. Last year saw over 69,000 complaints from people who were victims of crypto-based fraud.
“While the number of cryptocurrency-related complaints represents only about 10 percent of the total number of financial fraud complaints, the losses associated with these complaints account for almost 50 percent of the total losses,” said Michael Nordwell, assistant director of the FBI’s Criminal Investigation Division in the report.
The scams can hit anyone. Criminals will strike up an online friendship with the victim and encourage them to make a crypto investment via an app or website that’s a scam. (Romance scams, where scammers woo lonely people on dating services, are also a primary tool.) Those fake investments can often add up to tens of thousands of dollars—or more. When people attempt to withdraw the money, they’re told they need to pay a fee, but are still unable to get their investment back and end up losing it all.
While people over the age of 60 filed the most complaints, which isn’t uncommon with scams, the number of complaints from people in their 30s and 40s was nearly as high—as were the total losses.
California saw the most complaints, followed by Florida, Texas, New York and Washington. California also had the highest losses, with nearly $1.2 billion swindled. Texas was second with $412 million, then Florida with $390 million in losses.
“The number of sophisticated crypto scams is growing, and we appreciate these federal agencies and organizations joining us in educating consumers about the threat they pose,” Lindsay Torrico, executive director of the American Bankers Association Foundation, said in a statement. “It’s critical that consumers know the red flags to look out for so that no one loses their hard-earned savings to these skilled criminals. You can protect yourself, if you know what to look for.”