Crypto fraud tops FBI's annual crime report as Americans lose billions to scams

The FBI recently released its annual report on internet crime and found that cryptocurrency-related scams accounted for the most reported losses among all scam categories last year.

The Internet Crime Complaint Center (IC3) received 1,008,597 complaints in 2025, up from 859,532 in 2024, with Americans' reported losses nearing $21 billion last year.

Crypto scams accounted for over half of the $20.877 billion total losses reported by IC3, with over $11.366 billion in losses described as being related to cryptocurrency. Additionally, there were 181,565 complaints described as being related to cryptocurrency out of the roughly 1 million complaints received last year.

The annual report showed that crypto investment fraud was the highest source of financial losses to Americans in 2025, with $7.2 billion in reported losses. 

IRS WARNS AMERICANS TO BEWARE OF DANGEROUS NEW SCAMS THIS TAX SEASON

Crypto investment scams typically begin via social media, text messages, advertisements or dating platforms, with scammers introducing the victims to investment groups purporting to be knowledgeable industry insiders.

Victims are then enticed to send cryptocurrency to fake investment scam platforms or apps and are shown fake profits or offered loans to encourage larger investments. When they try to withdraw their money, they will be charged taxes and fees as the scammers make a final attempt to exploit them before disappearing with the victims' funds. Victims may also be targeted through recovery scams that claim to help them recover lost funds.

"These scams are often devastating because they can leave victims with significant loss and emotional distress," the report explained.

CRYPTO EXPERT EXPLAINS WHY BITCOIN MAKES 'PERFECT RECORD' FOR TRACKING DOWN CRIMINALS

In early 2024, the FBI launched Operation Level Up to proactively identify and inform people who are falling victim to cryptocurrency investment fraud. The initiative has notified over 8,000 victims since its inception and has reduced losses by over $500 million, according to the report. 

In 2025, it notified 3,780 victims of crypto investment fraud and 78% of those victims were unaware they were being scammed. The estimated victim savings amounted to more than $225 million, while 38 people who were exploited by those scams were referred to a victim specialist for suicide intervention who maintained contact with them until local law enforcement arrived.

Some examples of prevented losses included stopping a victim from cashing out $750,000 from his 401(k) retirement plan, stopping a victim from selling her house to invest $500,000, and stopping a victim from obtaining a loan to send $400,000 to the scammer.

US BANS NEW FOREIGN-MADE CONSUMER INTERNET ROUTERS OVER SECURITY CONCERNS

The report added that there were multiple instances in which the FBI intervened through the Financial Fraud Kill Chain (FFKC) to reverse wire transfers and return funds to victims.

The surge in losses related to crypto investment scams prompted the formation of the U.S. Attorney's Office District of Columbia Scam Center Strike Force, which merged the resources of the U.S. Attorney's Office with the Justice Department's Criminal Division, the FBI and the Secret Service to track down and disrupt those scams.

The Scam Center Strike Force is investigating scam compounds located in Southeast Asia, identifying and pursuing key leaders, including Chinese organized crime affiliates that operate in Cambodia, Laos and Burma to bring them to justice.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

It's also working to seize and disable U.S.-based facilities and infrastructure that provide the manner and means to execute those scams, which includes internet service providers and social media accounts, to prevent them from being weaponized against Americans.