2024: $9.3 Billion Lost to Cryptocurrency Scams, Elderly Most Affected

In 2024, Americans lost $9.3 billion to cryptocurrency scams, a 66% increase from 2023, with the elderly particularly impacted, suffering losses of $2.84 billion. Crypto investment scams were the significant cause, and the threat landscape is evolving rapidly, highlighting the need for improved regulatory responses, despite existing efforts lacking cohesion.

In 2024, Americans lost a staggering USD 9.3 billion to cryptocurrency scams, according to the FBI’s Internet Crime Complaint Center (IC3), which recorded 149,686 cryptocurrency-related complaints. This marks a 66% increase in losses from 2023. The elderly, particularly those aged 60 and older, were the most affected, suffering losses of USD 2.84 billion, while those aged 40 to 49 faced losses of USD 1.46 billion. The primary contributor to these financial losses was crypto investment scams, which alone accounted for USD 5.8 billion, representing a 47% rise compared to the previous year.

The escalation in cryptocurrency crime, highlighted by the 447% increase from USD 1.7 billion in 2018 to USD 9.3 billion in 2024, demonstrates an evolving threat landscape in which scammers are becoming increasingly adept at exploiting potential victims. The FBI also identified 67 new ransomware variants in 2024, showcasing the rapid adaptation of criminal tactics. Furthermore, Chainalysis indicates that illicit transaction volumes in crypto could surpass USD 51 billion in 2024, driven predominantly by organized crime syndicates. Notably, North Korean hackers are implicated, having stolen over USD 1.34 billion in 2024 as part of sophisticated theft operations.

Older Americans, usually less engaged with cryptocurrency, disproportionately shoulder the financial burden of scams. Their USD 2.84 billion loss represents over 30% of all cryptocurrency-related losses, contradicting their minimal cryptocurrency ownership. This demographic also reports the highest number of cybercrime complaints and total losses across all categories, with older individuals in states like Maine illustrating this vulnerability. Age-based targeting by scammers leads to fewer but more financially damaging incidents for older adults compared to younger individuals, who face frequent but smaller losses.

In response to the rapid growth of crypto crime, global regulatory bodies are intensifying efforts. The European Union has introduced the Markets in Crypto-Assets Regulation (MiCA), mandating licensing and transparency in cryptocurrency transactions. Conversely, the regulatory landscape in the U.S. remains fragmented across several agencies, including the SEC, CFTC, and FTC, complicating effective fraud prevention. The absence of cohesive regulatory frameworks creates opportunities for criminals, as evidenced by the 33% increase in cybercrime losses. International collaboration is increasingly called for to create standards for managing cryptocurrency risks and fostering innovation, yet the gap between crime losses and successfully prevented losses remains significant, indicating ongoing challenges in regulatory effectiveness.