STATEWIDE (WGME) --The FBI released new data this week showing a sharp increase in cryptocurrency-related fraud, with Mainers experiencing significant financial losses.

According to the FBI, there was a significant spike in cryptocurrency fraud cases over the past year. In 2023, nearly 70,000 complaints related to cryptocurrency scams were filed nationwide, amounting to $5.6 billion in losses, a 45 perce increase from 2022. In Maine alone, there were 210 complaints last year, with losses approaching $6 million.

The agency notes this surge in fraudulent activity is part of a broader trend as the popularity and value of cryptocurrencies like Bitcoin have soared in recent years.

Investigators note that scammers often reach out to potential victims through dating apps or social media platforms. They typically build trust over weeks or months before encouraging victims to invest in cryptocurrency.

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Some fraudsters even ask individuals to make payments using cryptocurrency, similar to gift card scams.

2023 Cryptocurrency Report from the FBI

How To Avoid Cryptocurrency Scams

• Only scammers demand payment in cryptocurrency. No legitimate business is going to demand you send cryptocurrency in advance – not to buy something, and not to protect your money. That’s always a scam.
• Only scammers will guarantee profits or big returns. Don’t trust people who promise you can quickly and easily make money in the crypto markets.
• Never mix online dating and investment advice. If you meet someone on a dating site or app, and they want to show you how to invest in crypto, or asks you to send them crypto, that’s a scam.

How To Report Cryptocurrency Scams

• the FTC at ReportFraud.ftc.gov
  
• the Internet Crime Complaint Center (IC3) at ic3.gov/Home/FileComplaint
  
• the cryptocurrency exchange company you used to send the money