TL;DR
- Crypto-related scams hit an all-time high in 2024, with losses surpassing $9.3 billion, a 66% increase from the previous year.
- Older adults were the most affected, losing $2.8 billion.
- The rise of AI-powered scams has worsened the fraud landscape, creating new challenges for regulators, users, and law enforcement in an increasingly digital financial world.
The cryptocurrency industry experienced one of its most turbulent years in terms of fraud, according to the FBI’s latest report. In 2024, losses from scams involving digital assets topped $9.3 billion, marking a 66% increase compared to 2023. Among the victims, older adults were the hardest hit, both in the number of complaints filed and the amount of money lost, with approximately $2.8 billion disappearing into the hands of fraudsters.
Most of these crimes were linked to fake investment schemes promising high returns through crypto—an old trick that still manages to deceive thousands of inexperienced users. Other common tactics included sextortion, where manipulated images or videos were used to blackmail victims, and scams involving crypto ATMs, which have become increasingly popular in major urban centers.
Artificial Intelligence Expands the Reach of Digital Fraud
A particularly alarming trend is the increased use of artificial intelligence tools by scammers. These technologies have allowed criminals to create extremely convincing fake identities and even impersonate prominent crypto influencers, such as Scott Melker, to deceive investors. The ease and low cost of scaling such operations represent a growing threat to the digital financial ecosystem.
Blockchain analytics firm “Chainalysis” reported that over $41 billion in crypto transactions during 2024 were linked to illicit activities. Nearly a quarter of that total involved hacking, extortion, trafficking, or scams. In March alone, Bybit experienced one of the largest heists in crypto history, losing more than $1.4 billion, while North Korean hackers reportedly stole over $1.3 billion as well.
Protecting Investors and Restoring Trust
Despite the alarming numbers, the report also highlighted progress in prevention. The FBI’s “Operation Level Up” helped prevent an estimated $285 million in potential losses. Moreover, these findings provide an opportunity to strengthen regulatory frameworks and educate the public on safe practices when navigating the crypto space.
Rather than demonize the industry, pro-crypto experts argue that these figures reflect the urgent need for better education and protection, not an inherent flaw in blockchain technology. With stronger safeguards, greater transparency, and active community involvement, the crypto economy still holds immense potential to grow in a secure and inclusive way.
