FBI's 'Operation Level Up' Prevents $285 Million in Crypto Fraud Losses for Victims

The FBI is proactively combatting cryptocurrency fraud, claiming to have rescued over 4,300 victims from losing a staggering $285 million.

This initiative, known as Operation Level Up, aims to mitigate the projected $3.9 billion in losses attributed to cryptocurrency investment scams this year alone.

The FBI’s Internet Crime Complaint Center (IC3) receives around 3,200 complaints related to cryptocurrency fraud each month. These incidents are often referred to disparagingly as “pig butchering,” although the Bureau officially categorizes them as confidence-based investment fraud involving cryptocurrency.

According to James Barnacle, the deputy assistant director of the FBI’s Criminal Investigative Division, “It’s an escalating issue that significantly impacts many Americans.”

These fraudsters are often skilled professionals adept at gaining trust, promising high returns before deceiving their victims. Many individuals have reported losing their entire life savings, retirement funds, and even their homes as a result.

The victims typically range from ages 30 to 60, are generally tech-savvy, and are actively looking for investment options. Consequently, scammers utilize social media platforms, professional networking sites, investment groups, and even dating services to reach potential victims.

One individual who reached out to the FBI was on the verge of investing an additional $1 million, while another planned to sell their home to invest $500,000, and a third had already withdrawn $500,000 from their retirement plan. Thanks to the Bureau’s intervention, these individuals avoided financial ruin.

Barnacle explained the tactics used by scammers: “Victims are enticed to invest in a seemingly lucrative opportunity, often shown impressive returns on paper or through an online platform. However, these accounts are fictitious, and when victims attempt to withdraw their funds, they find their requests denied.”

Prevention is key in protecting against these schemes. The FBI actively provides warnings and educational resources aimed at halting scammers from exploiting at-risk individuals.

This effort also assists the Bureau in gathering new leads and intelligence as it collaborates with both domestic and international agencies to identify, target, and dismantle criminal networks.

One key piece of advice is to avoid rushing decisions and instead “Take A Beat” to evaluate the situation thoroughly before proceeding.

The FBI encourages anyone who suspects they may have fallen victim to cryptocurrency fraud to reach out to the Internet Crime Complaint Center at ic3.gov.

Edited by Stacy Elliott.