Elderly Americans Hit Hardest by $9.3B Crypto Fraud Wave, Says FBI

Summary:

• Seniors aged 60+ lost nearly $3 billion to crypto fraud in 2024.
• Crypto-related fraud surged to a record $9.3 billion, up 66% from 2023.
• Elderly victims reported an average loss of $83,000, four times higher than the general population.
• Crypto ATM fraud incidents skyrocketed by 99%, with seniors losing over $107 million.
• Investment scams remain the largest threat, accounting for $1.6 billion in losses.

In 2024, the rise of cryptocurrency scams has had a devastating impact on older Americans. According to the latest report from the FBI’s Internet Crime Complaint Center (IC3), nearly $3 billion was lost by seniors aged 60 and older to crypto-related fraud. Despite making up just 17% of the U.S. population, seniors accounted for approximately 30% of all crypto fraud losses. This troubling statistic reveals how vulnerable this demographic has become to online financial scams.

Crypto Fraud Hits Record High

The total amount of crypto-related fraud in the U.S. reached a staggering $9.3 billion in 2024, marking a 66% increase from the previous year’s $5.6 billion. This sharp rise signals a growing concern as more individuals, especially seniors, fall victim to fraud schemes involving digital currencies. The average loss for victims over the age of 60 was reported at $83,000, a figure more than four times higher than the general average of $19,372 for other types of online crimes. These statistics underline how the elderly are disproportionately affected by these fraudulent activities.

As B. Chad Yarbrough, the operations director at the FBI’s criminal and cyber division, explained in the report, “The criminals Americans face today may look different than in years past, but they still want the same thing: to harm Americans for their own benefit.” This statement highlights the evolving nature of fraud, with scammers using new technologies and methods to exploit unsuspecting victims.

Crypto ATM Fraud: A Growing Threat

One of the most alarming trends highlighted in the FBI’s report is the dramatic rise in crypto ATM fraud, which saw an almost 100% increase from 2023 to 2024. These ATMs, which allow individuals to exchange traditional currency for cryptocurrency, have become a major target for scammers. Many victims, particularly older adults, do not fully understand how these machines work, making them prime targets for exploitation.

In 2024, over 2,600 individuals aged 60 and above reported losses totaling $107 million from crypto ATM scams. These fraudsters often ask victims to withdraw money from their bank accounts, including retirement or investment funds, and convert it into cryptocurrency through these ATMs. The ease of access to these machines and the lack of consumer awareness make them a convenient tool for scammers, and their rapid proliferation has only intensified the problem.

Investment Scams: The Largest Source of Losses

Investment scams continue to be the most significant contributor to financial losses among seniors, accounting for an overwhelming $1.6 billion in losses. These scams often promise high returns on crypto investments or fake cryptocurrency schemes, luring in victims who may be unfamiliar with the risks involved. Unfortunately, the allure of quick profits can cloud judgment, leading many to lose large sums of money.

The FBI has responded to this growing issue with initiatives like Operation Level Up, which focuses on identifying victims of crypto investment fraud and notifying them of the fraudulent activities. Since its launch, this operation has helped prevent an estimated $285 million in losses, highlighting the importance of proactive measures to protect consumers.

A Call for Increased Awareness

The FBI’s report also points out a significant underreporting of crypto fraud cases, meaning that the true scale of the problem is likely much larger than reported. Many victims, particularly seniors, may not fully understand that they have been scammed or may be too embarrassed to report their losses. This underreporting creates a distorted picture of the extent of crypto fraud, making it even more difficult to combat.

As scams continue to evolve and become more sophisticated, it’s crucial for seniors—and indeed, all individuals—to stay informed about the risks associated with cryptocurrency investments. Understanding how crypto transactions work and being cautious about unsolicited investment offers are essential steps in protecting oneself from falling victim to these scams. Seniors, in particular, should seek trusted financial advice and rely on reputable sources when making investment decisions.

The FBI encourages anyone who suspects they’ve been the victim of crypto fraud to report the incident to the Internet Crime Complaint Center (IC3). By sharing information about these scams, victims can help law enforcement track down and prevent further fraudulent activities, protecting not just themselves but others as well. The rise in crypto fraud targeting seniors is a stark reminder of the need for vigilance in today’s digital economy.