Crypto scams have likely reached a record high in 2024, driven by the rise of sophisticated tactics like “pig butchering” and the use of generative artificial intelligence. According to blockchain analytics firm Chainalysis, revenue from these scams increased nearly 40% in 2024 compared to the previous year.
The total estimated revenue from crypto scams in 2024 is at least $9.9 billion, with some estimates suggesting it could reach a record high of $12.4 billion once more data becomes available. Chainalysis attributes this growth to the increasing use of GenAI technology and marketplaces that support “pig butchering” operations.
The company notes that crypto fraud activity has grown 24% each year on average since 2020, with scams becoming increasingly sophisticated. Other types of lucrative scams include crypto drainers, high-yield investment scams, and cryptocurrency ATMs being targeted by scammers.
These scams often involve impersonating government officials or customer support agents to convince victims to deposit cash into machines or participate in fraudulent schemes. Chainalysis warns that the use of AI technology is likely to “exponentially scale” crypto scams, making them more challenging for authorities to detect and stop.
As the popularity of cryptocurrencies continues to grow, so does the threat of scams targeting investors. With new regulations and security measures being introduced, it’s essential for users to remain vigilant and take steps to protect themselves from these types of scams.
Source: https://www.reuters.com/technology/crypto-scams-likely-set-new-record-2024-helped-by-ai-chainalysis-says-2025-02-14