According to the latest report from Chainalysis, revenue from cryptocurrency scams is projected to hit an all-time high in 2024, driven primarily by so-called "pig butchering" scams and the increasing use of artificial intelligence. The blockchain analytics firm estimates in its published report that wallets linked to cryptocurrency scams received $9.9 billion worth of cryptocurrency in 2024, a figure expected to rise to $12.4 billion as the company identifies additional fraudulent wallets.
"Pig butchering" refers to a type of investment fraud in which scammers establish relationships with victims through social media or dating apps, aiming to lure them into a fictitious investment opportunity. The term derives from the tactic of "fattening up" victims with flattery and fabricated bonds before "slaughtering" them by stealing their funds. In 2024, revenues from such scams surged by nearly 40% compared to the previous year, while the number of deposits skyrocketed by approximately 210%. The sophistication of cryptocurrency scams and frauds continues to escalate, noted Chainalysis researchers, adding that generative artificial intelligence technology could exponentially amplify cryptocurrency-related fraud.
Cryptocurrency crime is becoming increasingly diverse, with illicit actors employing ever more refined techniques. Illicit cryptocurrency transactions account for just 0.14% of total blockchain activity, though Chainalysis suggests this percentage is likely to be revised upward as more illegal addresses are uncovered. In 2024, of the total value received by illicit crypto addresses, $10.8 billion was directed to entities engaged in direct cybercrime or providing the services and infrastructure necessary for such activities, including money laundering as a service.
Sources:
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Dylan Butts
2.
Aaron Feuerstein
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Chainalysis reports that crypto scams reached a record high in 2024, fueled by AI and "pig butchering" schemes, with estimated revenues between $9.9 billion and $12.4 billion.
