In 2024, cryptocurrency investment scams caused over $5.8 billion in losses, making up more than half of all digital asset-related fraud, according to the FBI. The total internet-related financial losses reached $16.6 billion, which is a 33% increase from the previous year. The report highlighted the vulnerability of older Americans, who collectively lost more than $2.8 billion. In response, the FBI has launched Operation Level Up to address this troubling issue.
A recent FBI report reveals that investment scams related to cryptocurrency resulted in more than $5.8 billion in losses during the past year. This figure represents over half of all reported digital asset fraud, according to the FBI’s Internet Crime Complaint Center (IC3). The findings underline a significant increase in cybercrime, with internet-related financial losses reaching a staggering $16.6 billion overall for 2024, a notable 33% rise compared to 2023.
Cryptocurrency scams have become particularly alarming, contributing a massive $9.3 billion this year alone. This represents a 66% surge from the previous year. The report indicates that crypto-based investment schemes have emerged as the leading cause of financial losses in the cyber fraud category. A worrying trend is the rise of “pig butchering” scams, in which fraudsters build elaborate online relationships to con victims into investing in fake crypto ventures.
Older adults, especially those over 60, have been especially hard hit by these scams, with total losses exceeding $2.8 billion from this demographic. This demographic has proven to be the most vulnerable to such fraudulent activities. This pattern is alarming, reflecting a significant need for heightened awareness within this age group.
In response to the alarming rise in crypto-related scams, the FBI launched Operation Level Up early in 2024, aiming to tackle the issue head-on. The initiative has already identified more than 4,300 victims of these schemes, revealing that over 75% of them did not even realise they had been deceived. This highlights how criminals are becoming increasingly sophisticated and effective in their methods.
The situation has drawn comments from TRM Labs, a blockchain forensics firm. They agree with the FBI’s assessment, noting that investment and grooming scams remain the most lucrative forms of crypto fraud. Their estimation indicates that over $10.7 billion in digital assets was lost to these kinds of scams last year, spurred on by a surge in phishing websites and misleading platforms.
Innovative technologies are also being misused by scammers. They now employ AI-generated identities, QR code schemes, and even crypto ATMs, alongside stablecoins like Tether (USDT) and DAI, to foster a façade of legitimacy and gain the trust of unsuspecting investors.
As cryptocurrency continues to gain global traction, experts and authorities are urging people to exercise due diligence. Investors should verify platforms thoroughly, sceptically evaluate unsolicited investment offers, and stay vigilant against the evolving tactics of online fraudsters.
