Investment scams linked to cryptocurrency were responsible for more than $5.8 billion in reported losses in 2024, making up over half of all digital asset-related fraud, according to a new report from the FBI’s Internet Crime Complaint Center (IC3).
The annual IC3 report paints a stark picture of rising cybercrime, revealing that total internet-related financial losses surged to $16.6 billion last year a 33% jump compared to 2023. Cryptocurrency scams alone contributed $9.3 billion of that figure, representing a staggering 66% year-over-year increase.
Among all cyber fraud methods, crypto-based investment schemes emerged as the most financially devastating. A notable portion of these cases were attributed to so-called “pig butchering” scams sophisticated frauds where criminals build fake relationships online, often over weeks or months, to manipulate victims into investing in bogus crypto platforms.
The report also highlights a troubling trend: older Americans, particularly those aged 60 and above, bore the brunt of these losses, with their collective reported damages exceeding $2.8 billion making them the most vulnerable demographic.
In response to the spike in digital asset fraud, the FBI launched Operation Level Up in early 2024. The initiative identified over 4,300 victims of crypto-related scams. Alarmingly, more than 75% of the affected individuals were unaware they had been defrauded, underscoring the increasing sophistication of cybercriminal tactics.
TRM Labs, a blockchain forensics firm, echoed the FBI’s concerns, reporting that investment and grooming scams remained the most lucrative crypto crime categories. The firm estimates that more than $10.7 billion in digital assets were siphoned into fraudulent schemes last year, fueled by an explosion of phishing websites and deceptive platforms.
Scammers are also leveraging evolving technology including AI-generated identities, QR code schemes, crypto ATMs, and popular stablecoins like Tether (USDT) and DAI to create an illusion of legitimacy and deepen trust with unsuspecting users.
As adoption of cryptocurrency expands globally, authorities and security experts continue to stress the importance of due diligence. Investors are urged to verify platforms, be skeptical of unsolicited offers, and remain alert to the ever-changing tactics employed by online fraudsters.
