The FBI reported over $9 billion in losses from cryptocurrency scams in 2024, reflecting a rise in internet fraud linked to crypto. Investment scams, particularly ‘pig butchering’, accounted for substantial losses, with older Americans being the most affected. Despite early efforts like Operation Level Up, scammers continue to exploit new tactics, leading to billions in ongoing losses.
In a recent report by the FBI, it was revealed that cryptocurrency scams led to over $9 billion in losses in 2024, accounting for more than 50% of total reported fraud related to crypto. The Internet Crime Complaint Center documented a staggering $16.6 billion in total internet crime losses, marking a 33% increase from 2023. Of that amount, $9.3 billion was specifically linked to scams involving cryptocurrencies, representing a 66% rise year-on-year.
The FBI’s 47-page report emphasised that cryptocurrency was integral to the surge in cybercrime losses in 2024, with nearly 150,000 complaints involving cryptocurrencies. Investment scams emerged as the primary contributor to financial damage, resulting in $5.8 billion in reported losses. A notable tactic used by scammers in these cases was termed ‘pig butchering’, where they cultivate fake online relationships to lure victims into investing in non-existent crypto platforms.
Individuals aged 60 and above experienced the highest losses, with this demographic reporting over $2.8 billion in crypto-related fraud. To combat this troubling trend, the FBI initiated Operation Level Up in early 2024, identifying more than 4,300 victims, 76% of whom were unaware of their victim status when contacted by the agency.
Research by blockchain forensic firm TRM Labs indicated that scams remained the prevailing type of illegal activity within the cryptocurrency space in 2024. They identified at least $10.7 billion sent to fraudulent schemes, alongside a rapid increase in phishing and investment scam websites surfacing each month. Scammers employ tools such as QR codes, crypto ATMs, and common stablecoins, including Tether’s USDT and DAI, often utilising AI-generated identities to connect with potential victims.
