The FBI’s IC3 2024 report reveals a shocking rise in cryptocurrency scams, particularly affecting older Americans. Older adults aged 60+ filed 33,000 complaints, accruing $2.8 billion in losses. The overall crypto fraud reached $9.3 billion, 66% higher than 2023. The report highlights scams like sextortion and ransomware, while younger individuals are also increasingly affected by schemes like pig butchering. Operation Level Up aims to mitigate the damage and support victims of these frauds.
In its recent 2024 report, the FBI’s Internet Crime Complaint Center (IC3) has shed light on the alarming rise of cryptocurrency-related fraud. There were over 140,000 complaints filed, leading to a staggering total of $9.3 billion in losses. This sharp increase has been notably severe with older Americans, particularly those aged 60 and above, suffering greatly from these scams.
Older adults submitted around 33,000 complaints, experiencing combined losses that reached an unsettling $2.8 billion. The report highlighted that this demographic has seen the most significant uptick in reported scams and financial damage. Specifically, losses surged by 66% compared to 2023, where the total was $5.6 billion. Investment schemes, particularly those involving cryptocurrency, have been the leading cause of these losses.
The report also discussed other fraudulent practices like sextortion, where perpetrators manipulate personal materials to extort money, as well as scams involving crypto ATMs. Ransomware incidents have also increased, rising by 9%, posing a growing concern for crucial infrastructure. The overall picture indicates that fraud, especially crypto scams, is driving a surge in cybercrime reports, with older individuals being increasingly targeted.
Interestingly, schemes that were once predominantly directed at older adults, like pig butchering scams, have started to affect younger individuals aged 30 to 49 at an alarming rate. A recent Cyvers study of 150 significant crypto platforms found over 200,000 instances of scams, leading to losses of approximately $5.5 billion in 2024, focusing mainly on Ethereum scams.
In response to the growing cryptocurrency fraud threat, the FBI and the US Secret Service launched ‘Operation Level Up’. This initiative aims to combat fraud, particularly the pig butchering schemes that involve building false relationships with victims. The operation has reached out to 4,323 individuals affected by cryptocurrency investment fraud, revealing that 76% of these victims were previously unaware they had been duped. Estimated financial savings for these victims are around $285.6 million. In addition, 42 victims were referred to FBI specialists for help, especially those experiencing suicidal thoughts due to their situations.
