Crypto Scam Revenues Hit Record High in 2024
The surge in "pig butchering" scams and the proliferation of generative artificial intelligence (GenAI) have likely driven crypto scam revenues to unprecedented levels in 2024, according to blockchain analytics firm Chainalysis.
"Pig Butchering" Scams on the Rise
Pig butchering scams, where fraudsters establish trust with victims before luring them into fraudulent schemes, witnessed a near 40% revenue increase in 2024 compared to the previous year.
Record-Breaking Scam Revenue
Crypto scam revenue reached at least $9.9 billion in 2024, potentially surpassing a record $12.4 billion as more data becomes available. Chainalysis attributed the surge to increasing scam sophistication.
GenAI Empowers Scammers
The rise of GenAI marketplaces and tools has facilitated pig butchering operations and lowered barriers to entry for scammers. Chainalysis warns that GenAI could further escalate crypto scams.
Crypto Scam Trends
Chainalysis has observed a steady 24% annual growth in crypto fraud activity since 2020. Bitcoin's price surge and the growing interest in blockchain technology have fueled the sector.
Other Lucrative Scams
Crypto drainers, which impersonate blockchain projects and seize victims' crypto wallets, and high-yield investment scams offering unrealistic returns have also been prevalent.
Crypto Scams Targeted
Chainalysis identified cryptocurrency ATMs as a hub for scams, with fraudsters impersonating officials to deceive victims into depositing cash.