Crypto scams are likely hitting a new record in 2024, driven by “pig butchering” romance scams and AI technology. A report by Chainalysis estimates that cryptocurrency scams amounted to $9.9 billion last year, with the figure likely to be revised higher.
Revenue from “pig butchering,” a type of romance and investment scam, grew nearly 40% year over year, driven by scammers using generative AI to impersonate others or generate realistic content. Romance scams have become increasingly organized, with cybercriminals leveraging AI and blockchain technology to carry out the crimes.
The report also highlights the growth of illicit crypto marketplaces and networks, such as Huione Guarantee, which operates as a “one-stop-shop” for illicit actors. The platform hosts services like money laundering, targeted data lists, web hosting services, social media accounts, and AI software, with vendors receiving at least $375.9 million in cryptocurrency.
Artificial intelligence is facilitating scams by enabling the generation of realistic fake content, including websites and listings, to power investment scams, purchase scams, and more. Some vendors are even advertising “face-changing services” for $200 worth of cryptocurrency.
Experts warn that tackling crypto scams at scale will require sustained efforts from government agencies, regulators, and organizations. The potential of AI technology to scale crypto scams exponentially further adds to the challenges associated with combating those crimes.
Source: https://www.cnbc.com/2025/02/13/crypto-scams-thrive-in-2024-on-back-of-pig-butchering-and-ai-report.html