In 2024, Michigan residents lost over $126 million to cryptocurrency fraud, up 63% from 2023. Nationally, crypto scams generated $9.3 billion in losses, with the FBI revealing a significant surge in complaints. Michigan ranked 17th for complaints and 18th for monetary losses, while the use of cryptocurrency for scams remains concerning due to its decentralized nature.
Recent data from the FBI reveals a staggering rise in cryptocurrency fraud losses for Michigan residents, hitting over $126 million in 2024. This marks a notable 63% increase from the previous year’s losses of around $79 million. These statistics stem from a nationwide review of cryptocurrency-related complaints which, recorded at almost 150,000 in 2024, demonstrates a stark surge from roughly 69,000 in 2023.
Despite cryptocurrency scams making up only about 17% of all fraud complaints filed, these scams accounted for nearly 60% of the total monetary losses reported last year. Nationally, over $9.3 billion was lost due to cryptocurrency fraud, representing a significant 66% rise from the year before. Authorities suggest that the actual figures may be even higher, as many cases go unreported.
Michigan’s statistics placed it at 17th in the nation for the number of cryptocurrency complaints, recording 3,009 cases—more than double the previous year’s figures. In terms of financial losses, the state ranks 18th with those crushing losses of over $126 million. The top three states most affected were California, Texas, and Florida, which collectively faced losses nearly reaching $3 billion.
So, what drives criminals to utilise cryptocurrency for scams? The FBI report highlights that the decentralized nature of cryptocurrencies is appealing for illicit activities. The absence of financial intermediaries enables swift, secure, and irreversible transactions which can be executed by anyone with just a private key and internet access. Although these transactions are permanently inscribed on public blockchains, tracing them becomes notably difficult once the assets are transferred to exchanges in countries with lax regulations on anti-money laundering practices.
