In 2024, Americans lost $9.3 billion to cryptocurrency scams, a 66% increase from 2023. Elderly individuals aged 60 and above were the hardest hit, losing $2.84 billion. Investment scams constituted the majority of these losses. The rise in crypto crimes highlights a growing sophistication in scams, especially among organised crime networks. Regulatory efforts are struggling to keep pace, resulting in ongoing vulnerabilities in the system.
In 2024, Americans reported a staggering loss of approximately $9.3 billion due to cryptocurrency scams, as indicated by the FBI’s Internet Crime Complaint Center (IC3), which received 149,686 related complaints. This figure represents a significant 66% increase from the prior year. The elderly population, particularly those aged 60 and older, suffered the most, losing $2.84 billion, while individuals aged 40 to 49 were the second most affected with losses of $1.46 billion.
The predominant type of scam contributing to these losses was crypto investment fraud, which accounted for $5.8 billion, reflecting a 47% rise compared to previous years. Throughout 2024, the FBI issued various alerts warning the public about increased threats, notably from North Korean hackers targeting web3 firms.
The escalation of cryptocurrency-related crime has been alarming, with losses soaring from $1.7 billion in 2018 to $9.3 billion in 2024, marking a remarkable 447% increase over six years. This rise highlights that scammers are becoming more adept at exploiting potential victims, outpacing the rate of legitimate cryptocurrency adoption. Additionally, the FBI reported identifying 67 new ransomware variants in 2024, showcasing the rapid evolution in criminal tactics within this domain.
Furthermore, it is evident that crypto crime is transitioning towards a more professional model, with Chainalysis estimating illicit transaction volumes could surpass $51 billion in 2024, predominantly driven by organised crime networks. Notably, North Korean state-sponsored hackers stolen over $1.34 billion in 2024 alone, accumulating over $6 billion in total since 2017 due to sophisticated theft operations.
Older Americans, while traditionally less engaged with cryptocurrency, accounted for over 30% of total losses in this space. The losses incurred by those over 60 were significant, indicative of a demographic often targeted due to their typically larger savings. FBI data shows that this age group filed the highest number of cybercrime complaints and associated losses across all categories.
In specific regions, such as Maine, residents aged 60 and above represented nearly $13 million of the state’s total $31 million in cybercrime losses, reinforcing the pattern of vulnerability among older individuals. In contrast, younger adults (aged 20-29) reported smaller but more frequent losses.
On the regulatory front, the international response is gaining urgency following the explosive growth of crypto crime. The European Union has enacted the Markets in Crypto-Assets Regulation (MiCA), mandating licensing and transparency from cryptocurrency entities. In the U.S., regulatory responses remain disjointed across various agencies like the SEC, CFTC, and FTC, each claiming jurisdiction over different aspects of cryptocurrency regulation.
Such fragmented oversight has allowed criminals to exploit regulatory gaps, which has been reflected in a 33% increase in overall cybercrime losses despite an uptick in enforcement actions. Furthermore, the complexity of regulating borderless transactions has spurred discussions on the necessity for global standards to effectively mitigate cryptocurrency risks without stifling innovation. Despite increased efforts leading to over 215 international arrests in 2024, the discrepancy between the reported crypto crime losses ($9.3 billion) and the losses averted through FBI interventions (estimated at $800 million) illustrates the significant hurdles regulators face.
