Elderly Americans Most Affected by $9.3 Billion Crypto Fraud in 2024

In 2024, U.S. residents lost $9.3 billion to crypto fraud, a 66% increase over 2023. Elderly individuals experienced the highest impact, with $2.8 billion in losses, averaging $83,000 per victim. The rise in crypto ATM scams surged by 99%. The FBI’s “Operation Level Up” has reportedly saved $285 million, but challenges remain due to evolving fraud techniques and global illicit crypto activity.

In 2024, Americans suffered a staggering $9.3 billion loss due to cryptocurrency fraud, reflecting a 66% rise compared to 2023’s $5.6 billion. This alarming trend, as highlighted by the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3), reveals a significant uptick in crypto-related scams, with over 140,000 complaints filed throughout the year, affecting individuals across various age groups.

Elderly individuals, particularly those over 60, were disproportionately impacted by these scams, accounting for $2.8 billion in losses while only representing 17% of the population. They reported 33,369 crypto-related complaints, indicating a severe vulnerability to fraudulent activities. The average loss for senior victims reached an unsettling $83,000—more than four times the average loss of $19,372 reported by other online crime victims.

Investment fraud was the leading contributor to seniors’ losses, totalling $1.6 billion. These fraudulent schemes typically promise high returns with minimal risk, targeting the retirement funds and life savings of elderly individuals. The FBI suggests that the actual extent of crypto fraud is likely underreported, as many victims do not report the crimes to law enforcement.

Concerns around crypto ATM and kiosk fraud have also escalated, with reported complaints nearly doubling—an astonishing 99% increase from 2023. Scammers exploit these relatively new and poorly understood platforms, prompting 2,674 seniors to report losses amounting to $107 million through these schemes. Often, victims are misled into withdrawing funds from their accounts and depositing them into crypto ATMs, converting their cash into cryptocurrency that is sent directly to the scammers.

In response to the rising tide of crypto fraud, the FBI launched “Operation Level Up” in January 2024 to identify and alert potential victims of fraudulent investment schemes. This initiative has reportedly saved around $285 million to date; however, sophisticated fraud techniques continue to pose significant challenges.

The FBI report also exposes other prevalent scams, notably “sextortion” schemes, which generated numerous complaints. Total losses from all online frauds reached $16.6 billion in 2024, with cryptocurrency scams contributing significantly to this figure. The report noted a 9% rise in ransomware complaints, highlighting the ongoing threat to vital infrastructure.

Blockchain analytics firm Chainalysis projects that upcoming years may see unprecedented levels of fraud, driven by generative AI technology making scams more accessible for criminal actors. Globally, approximately $41 billion in illicit crypto activities were reported in 2024, with 25% of funds linked to hacking and fraud. High-profile incidents, such as the $1.4 billion stolen from the Bybit exchange and North Korean hacker thefts exceeding $1.3 billion, underscore the widespread issue facing both consumers and exchanges alike.

As the popularity of cryptocurrency increases, there is an urgent need for enhanced consumer education and protection strategies. The FBI’s findings serve as a pressing indication of the inherent risks linked to this evolving financial technology, especially for vulnerable groups such as the elderly.