U.S. Crypto Scam Hotspots Exposed: Michigan Named Most at Risk in New Study

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Article courtesy of LegalBison.

• Michigan is among the states most worried about crypto fraud, in 13th place with 630 monthly searches
• California residents top the nation with 3,218 monthly searches hunting for crypto scam info, study reveals
• Texas and New York take second and third positions with 2,028 and 1,775 searches a month

A new study has pinpointed the crypto scam capitals of America, with Michigan coming in 13th.

The study was conducted by crypto license experts LegalBison. The research sifted through Google search data for a list of crypto scam-related terms across America. Researchers spotted significant regional variations in how worried Americans are about being a victim of cryptocurrency scams.

Top 20 States Most Concerned About Crypto Scams

California hunted for information about crypto scams at a jaw-dropping rate of 3,218 monthly searches. Residents in the Golden State punched ‘crypto scam’ and ‘is crypto a scam’ into their search bars more than any other fraud-related terms. Crypto fraud is the worst in California, with the FBI recording 9,522 complaints of crypto fraud in 2023, with a total of more than $1.1 billion being stolen, the highest numbers in the nation.

Texas claimed second place in the crypto fear rankings with 2,028 searches a month. Residents frequently looked up ‘crypto scam’ and ‘is cryptocurrency safe’, filing 4,770 complaints in a year. A loss of more than $441 million was recorded in the Lone Star State in 2023.

New York secured third place with 1,775 searches per month, with residents primarily searching for ‘crypto scam’ and ‘pump and dump crypto’. In total, 3,202 complaints were made about crypto scammers in 2023, and more than $317 million was stolen in the state.

Florida recorded 1,753 monthly searches, putting the state in fourth place. Residents in the Sunshine State made 5,076 complaints, the nation’s second-highest complaint rate, and recorded a loss of more than $390 million.

Illinois placed fifth at 903 searches per month. People in Illinois made 1,928 complaints in just a year. The state recorded a staggering loss of more than $160 million in 2023.

Pennsylvania came in sixth place for residents worried about crypto scams, with 825 monthly searches. The Keystone State recorded 1,773 complaints about digital currency fraudsters, with more than $123 million stolen.

Washington residents take seventh place, searching for crypto scams and guidance 762 times a month. In 2023, 2,049 complaints were made, and more than $141 million was stolen by scammers in the Evergreen State.

Georgia residents search for information about crypto scams 760 times a month, putting the state in eighth place. A staggering $118 million was stolen by crypto scammers in the state, with residents making 1,590 complaints.

New Jersey is in ninth place, where residents search for crypto scams and advice 756 times a month. New Jersey residents made 1,732 complaints about crypto scams in 2023, with more than $179 million being stolen.

Virginia completes the top 10, with 722 monthly searches. Virginians made 1,734 complaints in one year, with more than $122 million lost to crypto scammers.

Aaron Glauberman, Co-Founder of LegalBison, commented: “Cryptocurrency-related fraud cost Americans more than $5.6 billion in 2023, with losses expected to increase year on year. Elderly victims are almost always hit hardest, with people over 60 reporting staggering losses of $1.65 billion nationwide.

“Investment fraud accounts for 71% of all cryptocurrency-related losses, according to the FBI. Crypto lovers must stay informed about the most recent guidance and advice, or they could pay the ultimate price. The study shows Americans are educating themselves as much as possible, with terms like ‘fake crypto exchanges’ and ‘fake trading websites’ being searched thousands of times a month, which is a good sign of the growing public awareness.

“The findings paint a striking picture of how deeply crypto scam fears have taken root across the U.S., particularly in high-population and tech-savvy states like California, Texas, and New York. Not only are these states generating the highest number of crypto scam-related searches, but they’re also reporting some of the largest financial losses, suggesting a troubling link between awareness and vulnerability. The findings highlight a growing national anxiety around digital currency fraud, with older Americans most vulnerable.”

Methodology:

Monthly average search volume data was taken from Google Keyword Planner based on searches over the past 12 months to reveal the rankings for the US states most concerned with cryptocurrency scams.

A list of 99 unique and relevant keyword combinations was produced by Ahrefs, and the search volume data for each combination was collected on both a US national and state level. The list includes both short-tail and long-tail keywords such as “Bitcoin scams,” “Tesla Token scam,” “How to spot a Bitcoin scammer,” and “How to avoid crypto scams.” Please contact me for the full list of analyzed terms.

The total search volume for each state, as well as at a US national level, was collected, and this was ranked as a per 100k of population figure to rank the states with the most interest in crypto scams or fraud, as well as the keyword with the most volume across all states. The top 5 most searched-for keywords were also collected for each state.

Source: FBI Cryptocurrency Fraud Report 2023 https://www.ic3.gov/AnnualReport/Reports/2023_IC3CryptocurrencyReport.pdf

Full ranking: