Key Notes

Key Notes:

Cryptocurrency scams reached at least $9.9 billion in 2024, potentially exceeding $12 billion, with a 24% yearly increase since 2020.Pig butchering scams are a major concern, comprising 33.2% of scam revenue, with a 40% surge in 2024.AI-driven scams exploded, growing 1,900% since 2021, while crypto drainer scams jumped 170% in revenue in 2024.

Scammers in the cryptocurrency sector raked in at least $9.9 billion in 2024, with final estimates likely exceeding $12 billion as investigations uncover more illicit transactions, according to Chainalysis’s recent report on February 13. Scam-related revenues have steadily increased by 24% per year since 2020, proving that fraudulent activities are evolving at a relentless pace.

Among the biggest concerns is the rise of pig butchering scams, a form of long-term fraud that tricks victims into fake investment opportunities. These scams alone accounted for 33.2% of all scam-related inflows, with revenues surging by 40% compared to the previous year.

Meanwhile, high-yield investment scams (HYIS), though still responsible for 50.2% of total fraud revenue, dropped by 36.6% as investors became more cautious.

As authorities scramble to combat rising fraud, AI-powered tracking firms like Alterya have played a crucial role in identifying and preventing scams. In 2024 alone, Alterya flagged nearly $10 billion in scam transactions, helping financial institutions and exchanges take action against fraudulent activity.

Fraud networks have expanded their operations into new regions, with law enforcement agencies taking action. In December 2024, Nigerian authorities arrested 88 Chinese and Filipino nationals linked to large-scale crypto scams. Earlier in June, another 88 individuals were rescued from similar schemes in Namibia. The global nature of these crimes makes tracking and prevention increasingly challenging.

In Peru, authorities freed 43 Malaysians in October 2023 who were forced to work in scam compounds. These incidents highlight how organized crime groups are trafficking individuals to fuel massive scam operations, often linked to pig butchering schemes.

Another alarming trend is the drastic rise in deposit activity related to pig butchering. Although revenue grew by 40%, deposits surged 210% year-over-year. This suggests that while scammers target more victims, they shift to smaller, faster transactions, reducing the likelihood of detection. The average deposit per victim dropped by 55%, indicating a shift in fraudulent strategies.

The role of artificial intelligence in crypto fraud has exploded, with AI-driven scam services growing by 1,900% since 2021. Fraudsters use AI tools to generate deepfake identities, impersonate real users, and bypass verification controls. Nearly 85% of scam-related transactions in 2024 involved fully verified accounts, showing how scammers are staying ahead of traditional security measures.

“Huione Guarantee” is a significant enabler of AI-driven scams. It is a peer-to-peer marketplace linked to cybercrime. Since 2021, the platform has processed $70 billion in cryptocurrency transactions and offers a wide range of scam infrastructure services. These services include AI-generated fake identities, targeted victim databases, social media manipulation, and money laundering solutions.

Another shocking development is the rise of crypto drainers, a type of scam that saw a 170% jump in revenue in 2024. Deposits tied to drainer scams increased by 75%, while address poisoning scams skyrocketed by a staggering 15,000%. A major attack in May targeted high-balance wallets by creating fake lookalike addresses, tricking victims into sending funds to fraudulent accounts.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.

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