FBI Reports Record $9.3 Billion Losses in Crypto Fraud Targeting Seniors

The FBI reports a record $9.3 billion in crypto fraud losses in 2024, with seniors aged 60+ losing $2.8 billion. Complaints from seniors increased significantly with an average loss far exceeding the general trend. Key issues include scams involving crypto ATMs and investment fraud. The FBI’s “Operation Level Up” aims to curb losses, highlighting the growing complexity of crypto fraud targeting elderly individuals.

In 2024, the FBI reported a staggering increase in crypto-related fraud losses, reaching $9.3 billion—a 66% rise from $5.6 billion in 2023. The older demographic, particularly Americans aged 60 and above, is the most vulnerable, accounting for nearly $2.8 billion of the losses, which equates to 30% despite their 17% proportion of the population.

Seniors submitted 33,369 complaints regarding crypto fraud, with an average loss of $83,000—significantly higher than the general online crime average loss of $19,372. The FBI has indicated that many incidents go unreported, implying that the true extent of financial loss might be much greater.

A notable uptick in scams linked to crypto ATMs and kiosks was identified, with 2,674 older individuals reporting losses of $107 million in this area. These scams often involve inducing victims to withdraw funds from retirement accounts and investing them into cryptocurrencies via ATMs.

Investment fraud emerged as the prevalent scam for seniors, amounting to $1.6 billion in losses. To combat this, the FBI initiated “Operation Level Up,” successfully averting $285 million in potential fraud since early 2024.

The landscape of crypto fraud is evolving, with increasingly sophisticated tactics employed by perpetrators, including North Korean hacker groups implicated in the theft of $1.4 billion from Bybit, alongside market manipulation schemes like CLS Global’s wash trading on Uniswap.

The FBI urges a proactive approach to educate susceptible populations on crypto transactions and enhance protective measures. As more seniors engage with digital currencies, it’s imperative to raise awareness of potential risks, given their substantial retirement assets and relative lack of technological proficiency.