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BrokerChooser’s analysis of 2024 FBI data found California lost more than $2.5 billion to cryptocurrency scams, the highest total of any U.S. state. Texas ($1.4 billion), Florida ($1.07 billion) and Georgia ($420 million) also ranked among the five hardest-hit states.
Released this week, the report also highlights how cryptocurrency scams are increasingly exploiting social media, fake investment platforms and online educational courses, raising fresh concerns among cybersecurity experts and law enforcement agencies.
The BrokerChooser study examined FBI-reported cryptocurrency fraud losses across all U.S. states before comparing those losses with the cost of in-state college tuition. The analysis illustrates the scale of financial damage by estimating how many university degrees could have been funded with the money lost to cryptocurrency scams.
According to the findings, California led the nation with more than $2.5 billion in reported cryptocurrency fraud losses. Vermont recorded the lowest total, with approximately $11.3 million in reported losses.
Florida, Texas and Georgia all ranked among the five states with the highest overall losses, reflecting the growing reach of cryptocurrency scams in some of the country’s largest markets.
Adam Nasli, Head Broker Analyst at BrokerChooser, said the evolution of cryptocurrency fraud has made scams increasingly difficult to detect.
“While digital assets like cryptocurrency can be very convenient, their ease of use is exactly what makes them so risky and a common vehicle for cybercrime.” — Adam Nasli, Head Broker Analyst, BrokerChooser
He added that modern fraud schemes extend far beyond traditional phishing attempts.
“Cryptocurrency scams have moved on far beyond simple spam emails and have become increasingly sophisticated with time. They can target victims through social media, fake apps or companies, coaching and ‘celebrity endorsements.’ These are all ways in which you can be scammed.” — Adam Nasli, Head Broker Analyst, BrokerChooser
The report highlights the rise of cryptocurrency course scams, a growing category of fraud that relies on polished marketing campaigns promising financial freedom through digital assets.
According to BrokerChooser, fraudsters often showcase luxury cars, expensive homes and lavish lifestyles to convince potential victims that cryptocurrency trading generated their wealth. Victims are then encouraged to purchase costly educational courses, mentorship programs or exclusive membership groups that frequently provide little or no genuine investment value.
In many cases, scammers initially offer inexpensive webinars before pressuring customers into buying premium coaching packages costing thousands of dollars.
The FBI has also warned that cryptocurrency scams increasingly involve fake cryptocurrency exchanges, fraudulent investment platforms, social media solicitations and deceptive companies posing as legitimate businesses.
Some operators additionally encourage participants to recruit new buyers or resell the same educational courses, creating business models where marketing generates more income than actual cryptocurrency education.
The report further notes that paid WhatsApp or trading signal groups present another significant risk. Promoters may encourage subscribers to purchase specific digital assets before selling their own holdings, leaving followers with substantial losses in classic pump-and-dump schemes.
Fraudulent trading platforms can also display fabricated investment returns to persuade users to deposit additional funds. Once investors attempt withdrawals, they may encounter frozen accounts, unexpected fees or demands for even more payments.
Texas ranked second nationwide, with nearly $1.4 billion in reported cryptocurrency fraud losses, according to FBI data analyzed by BrokerChooser.
Florida followed in third place after reporting nearly $1.07 billion in losses linked to Cryptocurrency scams. BrokerChooser estimated that amount could have funded approximately 62,608 four-year college degrees across the state.
Georgia placed fifth nationally, recording more than $420 million in reported losses. Although its per-capita losses ranked nineteenth nationwide, BrokerChooser estimated the money lost could have financed roughly 20,774 college educations, illustrating the broader social impact of financial fraud.
The findings suggest that even states outside the very top of the rankings continue experiencing significant economic consequences from cryptocurrency-related fraud.
While the BrokerChooser report does not identify a single cause behind the rise in fraud, federal agencies have repeatedly warned about the growing sophistication of cybercriminals.
CBS News noted that the Internal Revenue Service (IRS) issued an urgent warning in April stating that artificial intelligence is accelerating crypto-related fraud schemes by enabling criminals to create more convincing impersonations and fraudulent investment opportunities.
The FBI advises anyone targeted by Cryptocurrency scams to stop sending money immediately, report the incident through the Internet Crime Complaint Center (IC3), and avoid so-called recovery scams that promise to recover stolen cryptocurrency for an additional fee.
As digital asset adoption expands, experts say stronger public awareness remains one of the most effective defenses against increasingly sophisticated fraud operations.
The latest findings suggest that education, verification of investment opportunities and skepticism toward unrealistic promises of guaranteed profits will be essential in limiting future losses from Cryptocurrency scams.
Primary sources: CBS News Atlanta; BrokerChooser study; FBI Internet Crime Complaint Center (IC3).
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