Crypto Scams Surge in 2024, Losses Top $9.9bn
Crypto scams are surging in 2024, with a staggering $9.9bn in on-chain transactions. Notably, romance baiting, or 'pig butchering', scams have seen a 40% increase in losses. These scams now account for a third of total crypto fraud revenue.
The number of deposits to pig butchering scams skyrocketed by 210% year-on-year in 2024. However, the average deposit amount decreased by 55% during the same period, suggesting scammers are targeting more people with smaller amounts. The professionalization of the scam industry, driven by marketplaces like Huione Guarantee, is contributing to this rise in fraud.
Crypto drainers, who trick victims into sending them cryptocurrency, accounted for 9.5% of crypto scam revenue in 2024. This figure saw a 170% annual increase. Meanwhile, high-yield investment scams, which comprised the largest chunk of crypto scam revenue at 50%, saw a 37% decrease from 2023.
Some pig butchering scam operations are diversifying their tactics. They are now employing 'work-from-home' scams to lure more victims. Scammers are also directing victims to other payment services or having them contact 'customer service' representatives to obtain a crypto address. The largest operators of marketplaces for crypto fraud in 2024 include the entity led by Zhimin Qian, who orchestrated a major crypto fraud involving 61,000 Bitcoin, valued at billions of euros, with over 128,000 victims primarily in China.
The increasing sophistication and diversification of crypto scams in 2024 underscore the urgent need for enhanced consumer protection and stricter regulation. As scammers adapt their tactics, so too must law enforcement and regulatory bodies to combat this growing threat.
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