In 2024, American losses from crypto scams reached $9.3 billion, a 66% rise from 2023. The elderly, particularly over 60, were heavily targeted, suffering losses of $2.8 billion. Authorities have launched Operation Level Up to combat fraud and support victims, highlighting the need for better digital education and stronger industry regulations.
The FBI recently released alarming figures regarding cryptocurrency scams in the United States, which have surged to an astonishing $9.3 billion lost in 2024. This marks an intense 66% increase compared to the previous year. Almost 150,000 crime reports related to digital assets highlight the growing threat posed by scammers. Investment fraud remains the most common issue, with perpetrators often luring victims through fake platforms boasting high returns on investments.
A significant chunk of these losses—about $5.8 billion—arises from fraudulent investment schemes. Scammers typically pose as financial advisors or credible promoters. A particularly notorious tactic, known as “pig butchering,” involves building a personal or romantic rapport with victims to gain their trust before convincing them to invest in fictitious crypto ventures. Once the victims hand over their money, the funds vanish, often untraceably.
Data theft stands out as the second-largest issue, with losses amounting to $1.1 billion. Such breaches often lead to further attacks, like unauthorised access to wallets or identity theft. Alarmingly, elderly individuals over 60 have suffered unprecedented losses of $2.8 billion, a sizeable leap from the $1.65 billion reported in 2023. Scammers exploit their digital naivety using fake investment opportunities, tech support scams, and impersonations, sometimes using crypto ATMs for transactions.
It’s important to note that other age groups are affected too. Americans aged 40 to 49 lost around $1.4 billion, and those under 40 reported losses of $1.37 billion. Yet, the older demographic shows a concerning trend, indicating they are the most vulnerable to these cryptocurrency frauds.
In response to this alarming rise in crime, US authorities initiated “Operation Level Up” in January 2024. This programme aims to pre-emptively identify fraud and monitor suspicious activities in real-time. Thanks to this operation, the FBI claims to have spotted thousands of victims and prevented losses estimated at $285 million.
The report also draws attention to the shocking link between financial scams and victims’ mental health, indicating that 42 individuals required suicide prevention support due to the emotional toll of such crimes. The nature of cryptocurrencies—decentralised and predominantly anonymous—creates fertile ground for online crime. The lack of sufficient regulations and fundamental financial literacy exacerbates the problem, leading to many falling prey to sophisticated scams.
The FBI makes it clear: effective solutions are urgently needed. Enhancing digital education and launching targeted campaigns—particularly for older adults—are crucial steps. The cryptocurrency sector must work closely with law enforcement to develop transparent verification systems and counteract fraud. As cryptocurrencies grow in investment popularity, addressing security vulnerabilities and restoring trust must be paramount.
With $9.3 billion lost to crypto scams in 2024 alone, protective measures aimed at safeguarding citizens, particularly the vulnerable population, must be a priority. The evolving digitised economy leaves no room for errors in cybersecurity; it’s now an essential issue that demands a unified strategy that integrates prevention, education, and judicial action.
