The Federal Bureau of Investigation (FBI) has revealed that investment scams accounted for $5.8 billion, more than 50% of all reported crypto losses in 2024.
The report from the FBI’s Internet Crime Complaint Center (IC3), which highlights the alarming findings on the rise of cryptocurrency-related cybercrime, said that total internet crime losses skyrocketed to $16.6 billion, marking a 33% increase compared to 2023.
Crypto-related scams contributed $9.3 billion, reflecting an astonishing 66% year-over-year surge.
It emphasised the central role of cryptocurrency in cybercrime losses, citing nearly 150,000 complaints linked to fraudulent crypto activities.
Among the various schemes, investment scams emerged as the most damaging, with reported losses totalling $5.8 billion.
A significant portion of these investment fraud cases involved “pig butchering” scams, a manipulative scheme where criminals cultivate fake online relationships to coerce victims into investing in fraudulent crypto platforms.
The report highlighted the severe impact of crypto scams on older Americans, with individuals aged 60 and above reporting losses exceeding $2.8 billion, making them the most targeted age group.
To combat the rising trend, the FBI initiated Operation Level Up in early 2024, identifying more than 4,300 victims of crypto-related scams.
76% of those contacted were unaware they had been victimised, indicating the sophistication of cybercriminal tactics.
Analysts at TRM Labs, a blockchain forensic firm, reiterated concerns over the dominance of scams in crypto-related crimes, stating that investment and financial grooming scams remained the most lucrative forms of illicit on-chain activity in 2024.
Their findings estimate that at least $10.7 billion in crypto funds were funnelled into fraudulent schemes, with thousands of phishing and investment scam websites emerging monthly.
Scammers are increasingly exploiting QR codes, crypto ATMS, and stablecoins, such as Tether’s USDT and decentralised stablecoin DAI, to defraud users, often using AI-generated personas to impersonate financial advisors or online acquaintances.
As cryptocurrency adoption grows, law enforcement agencies and cybersecurity experts continue to warn investors to exercise caution, verify platforms, and remain vigilant against evolving fraud tactics.
