A newly released report from the Federal Bureau of Investigation (FBI) has shed light on a troubling surge in cryptocurrency cybercrime in 2024, with investment scams alone accounting for $5.8 billion in losses—over half of all reported crypto-related fraud.
According to data from the FBI’s Internet Crime Complaint Center (IC3), total internet crime losses ballooned to $16.6 billion, a 33% jump compared to 2023. Of that, crypto-related scams made up $9.3 billion, reflecting a dramatic 66% increase year-over-year.
The FBI’s 47-page report emphasized that nearly 150,000 complaints were linked to fraudulent crypto activity. Among the most prevalent schemes was the “pig butchering” scam, where fraudsters build fake online relationships to lure victims into bogus investments.
Elderly Victims Hit Hardest
A particularly vulnerable demographic is older Americans. The report revealed that individuals aged 60 and above lost more than $2.8 billion, making them the most affected group.
In response, the FBI launched Operation Level Up in early 2024, identifying over 4,300 victims. Alarmingly, 76% of them were unaware they had been targeted, showcasing the evolving sophistication of these digital cons.
Expanding Fraud Networks and AI Threats
Blockchain forensics firm TRM Labs warned of rapidly growing fraud networks exploiting QR codes, crypto ATMs, and stablecoins like USDT and DAI. The firm estimates that $10.7 billion in funds were funneled into illicit schemes across the year.
They also noted the rise of AI-generated personas used to impersonate trusted advisors or acquaintances—further complicating detection for everyday users.
Staying Safe in a Shifting Landscape
As cryptocurrency adoption continues to rise, law enforcement and cybersecurity experts are urging the public to remain vigilant, verify platforms, and question unsolicited investment opportunities.
