Rise in Cryptocurrency Fraud in 2025
In 2025, the United States saw a staggering rise in fraud associated with cryptocurrencies, with American losses from these scams reaching a historic $11.366 billion, signifying a 22% increase from the previous year. The FBI’s Internet Crime Complaint Center (IC3) disclosed in a recent report that it logged 181,565 complaints related to crypto fraud, which marks a 21% surge compared to the previous year. Victims reported average losses of $62,604, with 18,589 individuals losing over $100,000 each.
Investment Scams and Their Impact
Investment scams in the crypto space were particularly alarming, accounting for $7.228 billion of total losses, a notable 25% increase from 2024. Complaints in this category also surged by 48%.
“The FBI remains fully committed to ensuring Americans’ safety online,”
stated Jose Perez, the Operations Director for the Bureau’s Criminal and Cyber Branch, highlighting the agency’s ongoing efforts, which include a recent executive order targeting cybercrime and fraudulent activities.
Demographic Insights on Victims
Ari Redbord, the global policy head at blockchain intelligence firm TRM Labs, commented on these figures, describing the $11.3 billion loss as an important benchmark but emphasized that it only represents part of the overall problem, estimating global fraud could be around $35 billion, with just 15% of victims reporting incidents.
The report further revealed that older Americans, specifically those aged 60 and above, suffered the heaviest financial impact, with $4.432 billion lost through 44,555 complaints—nearly double the losses reported by those in their 50s, who lost $2.139 billion. This demographic, while comprising approximately 17% of the U.S. population, accounted for a disproportionate share of total crypto fraud losses.
Emerging Scams and Regional Losses
Additionally, scams targeting crypto ATMs and kiosks surged in 2025, generating $389 million in losses from 13,460 complaints—a 58% increase from the previous year. Fraud targeting seniors at these kiosks amounted to $257.4 million, revealing how accessible payment methods are increasingly being exploited by scammers. Recovery scams, which involve fraudsters claiming to help victims regain lost funds, added another $1.4 billion in losses to the grim tally.
Regionally, California topped the list of states with crypto-related complaints and financial losses, reporting $2.099 billion lost, followed by Texas ($1.016 billion), Florida ($914.5 million), and New York ($593.4 million). Despite ranking 24th in terms of complaints, Oregon’s losses reached $545.9 million, illustrating how widespread the issue has become.
FBI Initiatives and Regulatory Responses
In response to the rampant increase in crypto-related fraud, the FBI’s initiative, “Operation Level Up,” has reached out to over 8,000 victims and has been pivotal in preventing more than $500 million in potential losses, including $225.9 million in 2025 alone. These urgent concerns have prompted several states to tighten regulations surrounding crypto ATMs. West Virginia recently enacted laws placing crypto kiosks under money transmission regulations, and Minnesota is considering a complete ban on such machines.
In Connecticut, regulatory actions resulted in the suspension of Bitcoin Depot’s operating license due to overcharging customers and failure to refund fraud victims, culminating in the CEO’s resignation. Experts warn that while regulations may slow down fraud, scammers are quick to adapt, moving towards more sophisticated methods such as deepfakes and social engineering.
Stefan Muehlbauer of CertiK underscores the importance of a comprehensive defensive strategy that integrates AI for fraud detection, robust recovery systems, and educational outreach to aid in breaking the psychological grasp of scammers. As fraud risks evolve, Muehlbauer predicts a sustained rise in scam activities unless the core issues are thoroughly addressed.
