Crypto-related scams have surged to unprecedented levels in the United States, with losses totaling $9.3 billion in 2024, according to the FBI’s Internet Crime Complaint Center (IC3) annual report. This marks a staggering 66% increase from the previous year, highlighting the growing prevalence of digital asset fraud.
The report reveals nearly 150,000 incidents tied to cryptocurrency crimes, with the most common being investment scams carried out through fraudulent platforms promising high returns. Victims unknowingly send funds to fraudsters, believing they are investing in legitimate projects.
Investment Frauds and the Rise of "Pig Butchering" Scams
A large portion of the losses—$5.8 billion—stems from fake investment schemes, where perpetrators pose as financial experts or trustworthy promoters to lure victims. A particularly concerning scam technique, known as “pig butchering,” involves criminals building personal or romantic relationships with their targets, gaining their trust before encouraging them to invest in bogus crypto projects. Once funds are deposited, the scammers quickly vanish, leaving victims with no recourse.
Data theft also continues to be a significant issue, causing $1.1 billion in damages. These breaches often serve as a gateway for further crimes, such as unauthorized access to digital wallets and identity theft, which are used to manipulate online investments.
Elderly Victims Bear the Brunt
The elderly have been disproportionately affected by crypto scams, with those over 60 years old losing $2.8 billion in 2024, up from $1.65 billion in 2023. Scammers specifically target this demographic through fake investment opportunities, tech support fraud, and impersonation schemes, sometimes utilizing crypto ATMs to collect funds.
While younger age groups have also been affected—Americans between 40 and 49 lost $1.4 billion, while those under 40 reported $1.37 billion in losses—the elderly remain the most vulnerable.
New Government Initiative: Operation Level Up
In response to the rise in crypto crimes, U.S. authorities launched Operation Level Up in January 2024, aiming to detect fraud attempts early and track suspicious activities in real-time. The FBI claims that this initiative has already helped identify thousands of crypto scam victims and prevented an estimated $285 million in losses.
The report also highlights the severe mental toll these scams take on victims, with 42 individuals referred to suicide prevention services, underscoring the emotional and psychological impact of such financial crimes.
The Unregulated World of Cryptocurrency
Cryptocurrencies, due to their decentralized nature and the anonymity they offer, are particularly susceptible to exploitation by cybercriminals. Despite their potential as a legitimate investment tool, the lack of robust regulation and limited financial education have created a perfect storm for fraud. Many victims fall for fabricated platforms, while others are deceived by increasingly sophisticated scams.
Regaining lost funds remains a difficult task for most victims, as there are few institutional mechanisms in place to recover stolen cryptocurrency.
Looking Ahead: The Need for a Coordinated Response
The FBI’s report makes it clear that the problem of crypto scams is escalating and requires a systemic response. Increased digital education, targeted campaigns for vulnerable age groups, and improved alert systems are essential in combating these fraudulent activities.
The cryptocurrency industry itself must also step up, developing better verification systems and tools to prevent fraud. While the sector is expected to continue growing, it is crucial that security and trust are prioritized.
Law enforcement will need to strengthen national and international cooperation to dismantle criminal networks operating in the crypto space. Given the staggering $9.3 billion lost to crypto scams in 2024 alone, protecting consumers—particularly the most vulnerable—must be a priority. An integrated strategy that combines prevention, education, and legal action is necessary to safeguard citizens in an increasingly digital economy.
In a world where cybersecurity is no longer optional, but a necessity, the need for action has never been more urgent.