Significant Rise in Cryptocurrency Fraud: Elderly Americans Most Affected

In 2024, Americans lost $9.3 billion to crypto fraud, a 66% rise from 2023. Elderly individuals, making up only 17% of the population, accounted for 30% of these losses, totalling $2.8 billion. Complaints regarding crypto ATMs surged by 99%, and the FBI’s “Operation Level Up” has saved $285 million in potential fraud losses. The report highlights significant risks, particularly for seniors, as crypto scams continue to proliferate.

In 2024, Americans experienced a staggering loss of $9.3 billion due to cryptocurrency fraud, marking a 66% increase from the previous year. This alarming figure underscores the escalating threat of crypto scams affecting all demographics, but particularly the elderly. The Federal Bureau of Investigation (FBI) revealed in their annual report that more than 140,000 crypto-related complaints were filed throughout the year.

Individuals over 60 reported 33,369 complaints, resulting in losses of $2.8 billion, accounting for 30% of all fraud losses despite this age group comprising merely 17% of the U.S. population. The impact on seniors was significant, with an average loss of $83,000 per person, compared to the overall average loss of $19,372 for online crimes. B. Chad Yarbrough of the FBI addressed the evolving nature of fraud, emphasising the persistent harm that scammers inflict on individuals.

Investment fraud emerged as the predominant threat to older adults, inflicting $1.6 billion in losses as it often promises high returns with minimal risk on retirement savings. The FBI reports indicate that the number of actual victims is likely greater, as many do not report their experiences to authorities.

Another concerning trend is the surge in crypto ATM fraud, which saw complaints increase by 99% from 2023 to 2024. With 2,674 seniors contacting the FBI regarding $107 million in losses related to these ATMs, fraudsters commonly direct victims to withdraw funds and deposit them into crypto ATMs, converting cash into cryptocurrency for the scammer’s wallet.

In response, the FBI initiated “Operation Level Up” in January 2024 to identify and alert potential victims of crypto fraud. This operation has reportedly saved around $285 million, yet challenges persist as scamming tactics continue to evolve. The FBI report also noted increasing complaints regarding sextortion schemes, further highlighting the widespread nature of online fraud.

Overall, total losses from online fraud reached $16.6 billion, with cryptocurrency scams contributing significantly. Compounding threats include rising ransomware attacks, with complaints increasing by 9% from 2023. Blockchain analytics firm Chainalysis warns that 2025 may be the year with the highest number of scams, driven by advances in generative AI technology.

The global context reveals that illicit crypto activities amounted to approximately $41 billion in 2024, with a notable portion linked to hacking and scams. Noteworthy events include the theft of $1.4 billion from the Bybit exchange and over $1.3 billion attributed to North Korean hackers. As cryptocurrency use escalates, enhancing consumer education and protection is crucial, particularly for vulnerable populations such as the elderly.