The FBI reported over $9 billion in fraud losses linked to cryptocurrency scams in 2024, largely due to investment scams like ‘pig butchering.’ Older Americans were the most affected demographic, and the FBI’s Operation Level Up aimed to address the growing issue of crypto-related fraud. TRM Labs highlighted that scams remain a critical concern, facilitating billions of losses through advanced techniques and new fraudulent schemes.
According to the FBI’s latest report, investment scams involving cryptocurrency accounted for over 50% of all reported crypto losses in 2024. Cybercrime incidents related to cryptocurrencies reached a staggering $16.6 billion, marking a 33% increase from 2023, with cryptocurrency-related scams alone causing $9.3 billion in losses—a 66% year-on-year surge.
The FBI’s 47-page report indicates that cryptocurrency was pivotal to cybercrime losses in 2024, with nearly 150,000 complaints involving cryptocurrencies. Notably, investment scams led to substantial financial damage, with reported losses amounting to $5.8 billion, many cases involving the practice known as “pig butchering,” where scammers create false online personas to persuade victims to invest in non-existent crypto platforms.
Older Americans were the most affected demographic, with individuals aged 60 and above reporting losses exceeding $2.8 billion—the highest of any age group. In response to this alarming trend, the FBI initiated Operation Level Up in early 2024, identifying over 4,300 victims, with 76% unaware that they were being targeted as scams.
Research from blockchain forensic firm TRM Labs confirmed that scams represented the predominant form of illicit activity in the blockchain space in 2024, with financial grooming and investment scams inflicting billions in damages. TRM Labs uncovered at least $10.7 billion in crypto funds diverted to fraudulent schemes, along with a significant uptick in the emergence of new phishing and investment scam websites.
The analysts observed that scammers continue to exploit various technologies, including QR codes, crypto ATMs, and stablecoins such as Tether’s USDT and DAI, often utilizing AI-generated profiles to engage with potential victims.
