WASHINGTON: Thousands of people lose money to fake cryptocurrency schemes promising high returns. The FBI is fighting back with Operation Level Up. This initiative identifies victims in real time and warns them before further losses. Since January 2025, the FBI has alerted over 4,300 victims, saving approximately $285 million.
Common Fraud Tactics
Scammers often build trust through online relationships before introducing fake investment opportunities. These fraudsters target victims on social media, dating sites, and professional platforms. Many victims are tech-savvy individuals aged 30 to 60 seeking investment options. Scammers use fake apps and websites showing false profits to convince victims to invest more. When victims try withdrawing funds, they are blocked from accessing their money.
Victims at Risk
Many people do not realize they are being scammed until it is too late. The FBI has spoken to victims who nearly invested life-changing amounts. One victim was about to invest an additional $1 million before FBI intervention. Another victim planned to sell a home to invest $500,000, while another withdrew the same amount from retirement savings. The FBI’s timely alerts stopped these transactions, preventing massive losses.
Emotional Impact
Many victims experience deep emotional distress after realizing they were scammed. Some require support from the FBI’s Victim Services Division. In severe cases, the FBI has provided suicide intervention to victims struggling with the loss. James Barnacle, Deputy Assistant Director of the FBI’s Criminal Investigative Division, stressed the urgency of intervention. “It’s really important for us to intervene and interdict and try to do something,” he said.
Shocking Statistics
In 2023, the FBI’s Internet Crime Complaint Center (IC3) recorded $3.9 billion in cryptocurrency-related investment fraud losses. Experts believe actual losses are even higher due to underreporting. About 3,200 cryptocurrency investment fraud complaints are submitted to IC3 every month. Many victims trust the scams because they appear legitimate at first glance.
Fake Investment Platforms
Scammers create professional-looking apps and websites to deceive investors. They show impressive profits to make victims believe their money is growing. Victims see fake returns and believe they are making money. Some are even allowed small withdrawals early on to gain confidence. But when victims try withdrawing larger amounts, they are denied access to their funds.
FBI Intervention
Operation Level Up allows the FBI to act before victims lose everything. The FBI contacts potential victims directly to warn them. Some victims are initially skeptical of these warnings. To confirm their identity, FBI agents never ask for personal details or request money transfers. If someone urges you to ignore FBI communications, they may be involved in the fraud.
How Scammers Operate
These fraudsters operate in well-organized networks with advanced strategies. Their full-time job is scamming people, and they are highly skilled. They reach out through texts, investment groups, and social media. They lure victims with promises of wealth, using psychological tricks to gain trust. By the time victims realize the truth, they may have lost everything.
Prevention and Awareness
The best defense against fraud is awareness and caution. The FBI urges the public to take a moment before making investment decisions. If an online connection pressures you into investing, it is likely a scam. Research investment opportunities and verify sources before transferring money. If you suspect fraud, report it to the FBI’s Internet Crime Complaint Center at ic3.gov.
FBI’s Larger Mission
Beyond helping victims, the FBI is actively investigating and targeting fraud networks. The agency shares fraudulent domains and accounts with private companies for further action. Working with global partners, the FBI aims to dismantle criminal organizations behind these scams. Their multi-layered strategy targets both financial and technological aspects of cryptocurrency fraud.
Take a Moment
Scammers often create urgency to pressure victims into quick decisions. The FBI advises people to “Take A Beat”—pause and assess the situation. Verify all investment opportunities before committing your money. If someone online promotes an investment, it is likely fraudulent. Speak to friends and family before making any financial moves. This simple step can prevent future losses.
Reporting Fraud
If you suspect cryptocurrency investment fraud, act immediately. Contact your bank to stop further transactions. Report the scam to the FBI’s Internet Crime Complaint Center at ic3.gov. Talking to trusted friends or family can help protect others from similar scams. The FBI is committed to keeping Americans safe from these sophisticated fraud schemes.
