New York, Sunday, September 15, 2024 –A new Chainalysis report reveals a troubling surge in cryptocurrency-related scams in 2024. The research highlights that 43% of illicit crypto inflows have gone to wallets activated this year, a significant increase from 29.9% in 2022.
The report indicates a shift from long-term Ponzi schemes to more targeted frauds, including a dramatic rise in “romance scams.” These scams, where perpetrators build trust with victims online before defrauding them, have surged 85 times since 2020. The average payment sizes in these scams have had severe financial and emotional impacts on victims.
Address poisoning, where scammers send small, often worthless transactions to a victim’s wallet to mimic legitimate addresses, has also become more prevalent. This tactic aims to trick victims into sending funds to fraudulent addresses.
The lifespan of scams has significantly shortened, with the average duration dropping from 271 days in 2020 to just 42 days in 2024. This trend indicates that cybercriminals are focusing on quick, high-profit schemes rather than lengthy operations, likely due to increased awareness and enforcement against large-scale frauds.
The FBI has reported a 45% increase in cryptocurrency-related fraud losses in 2023, totaling $5.6 billion. Investment scams were the most damaging, contributing to $3.9 billion of the total losses. The FBI urges caution, advising individuals to be wary of unsolicited offers and high-pressure sales tactics.
As scammers refine their tactics, experts stress the importance of heightened vigilance and collaboration. Reporting suspicious activity can help law enforcement agencies track trends and develop strategies to combat these evolving threats.
