<div>According to an article in Mishcon News, the 2023 Cryptocurrency Fraud Report released by the FBI’s Internet Crime Complaint Center in September showed $5.6 billion in estimated losses connected to cryptocurrency fraud.Cryptocurrency continues to grow in popularity despite the problems it poses for the financial sector, law enforcement, and investigations professionals. Its growth expands the opportunities for fraud. One of the selling points of decentralized money is its global currency, and cryptocurrency fraud is an international phenomenon. However, public complaints in the US alone reached 69,000 in 2023, up from 48,000 in 2022. The article notes that cryptocurrencies are used predominantly for legitimate purposes. However, their complexities make them useful for a variety of illicit activities, including money laundering, investment scams, ransomware attack payoffs, and theft.The FBI clearly states that the success rate of crypto fraud makes it highly lucrative for internet-based criminals, requiring resource commitment and a robust response.The decentralized nature of cryptocurrencies and lack of regulatory frameworks make tracking and recovering stolen funds challenging for both victims and law enforcement. The report stresses the need for clear regulatory guidelines in the cryptocurrency sector, with investigation professionals offering key insights into the frauds and tools needed for prevention.Billions of dollars are at stake, and given their success rate, crypto frauds will likely continue to rise in the foreseeable future. Victims must be wary of recovery scams and their niche in cryptocurrency fraud. Some losses can be recovered through thorough investigation and legal actions such as civil injunctions.</div>

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Cryptocurrency Fraud Is a Growing Challenge in Internet Crime

According to an article in Mishcon News, the 2023 Cryptocurrency Fraud Report released by the FBI’s Internet Crime Complaint Center in September showed $5.6 billion in estimated losses connected to cryptocurrency fraud. Cryptocurrency continues to grow in popularity despite the problems it poses for the financial sector, law enforcement,...