In 2024, Michigan suffered over $126 million in cryptocurrency scams, a 63% rise from 2023. Nationally, losses exceeded $9.3 billion, with concerns about underreporting. Cryptocurrency’s decentralized nature makes it attractive for scammers, complicating recovery efforts for victims.
New data from the FBI reveals that residents of Michigan, or Michiganders, lost an astonishing $126,330,606 to cryptocurrency scams in 2024. This figure represents a significant increase of about 63% compared to the $79,894,360 lost in 2023. The agency collected and examined all reported cryptocurrency complaints throughout the year, highlighting a worrying trend in fraudulent activity.
Nationally, there were almost 149,686 complaints regarding cryptocurrency fraud in 2024, more than double the figure from the previous year, which stood at roughly 69,000. Interestingly, even though the reported cryptocurrency scams only constituted around 17% of all fraud complaints, they accounted for a staggering 60% of total financial losses across the board during the year.
In total, more than $9.3 billion was lost nationwide to cryptocurrency scams in 2024—a 66% hike from losses in 2023. Authorities suspect that the actual numbers could be even higher, as many incidents may go unreported. Michigan’s placement was notable; it ranked 17th in the country for the number of cryptocurrency-related complaints with 3,009, which is more than double the count from 2023.
Monetarily, Michigan ranked 18th in terms of financial losses, contributing the substantial amount of $126,330,606 to the national total. To put things in perspective, California, Texas, and Florida collectively incurred nearly $3 billion in cryptocurrency losses in 2024, taking the top spots for both complaints and financial damages.
So, why do scammers favour cryptocurrencies? The report indicates that criminals are drawn to the decentralized nature of these digital assets. This characteristic does away with traditional financial intermediaries, paving the way for secure, fast, and irreversible transactions. Transactions can be executed anywhere with a simple internet connection and a private key.
Although these transactions are permanently recorded on public blockchains, tracking the flow of cryptocurrency becomes complicated, especially once it’s moved to foreign exchanges in areas with lax regulations against money laundering. This presents significant challenges for authorities trying to combat fraud in the digital currency space.
