FBI’s Annual Analysis of Cryptocurrency Fraud
The FBI’s Internet Crime Complaint Center (IC3) recently published its yearly analysis of cryptocurrency-related fraud for the year 2024, revealing alarming statistics about financial losses and scams in this volatile sector. The report, made public on April 23, documented over 140,000 complaints involving cryptocurrency, culminating in an astonishing loss of approximately $9.3 billion.
Notably, senior citizens aged 60 and above were disproportionately affected, accounting for around 33,000 of the complaints and incurring losses estimated at $2.8 billion.
Escalating Financial Losses in Cryptocurrency
2024 marked a particularly troubling year, with the total losses reported to the IC3 reaching an all-time high of $16.6 billion. The report highlights that fraud constituted the majority of these financial damages, amidst a 9% increase in ransomware incidents compared to the previous year, 2023. Seniors emerged as the most vulnerable demographic, experiencing the largest financial setbacks and submitting the most fraud reports.
The increase in cryptocurrency-related losses was staggering, soaring by approximately 66% from the previous year’s total of $5.6 billion. The majority of these financial damages stemmed from fraudulent investment schemes involving cryptocurrencies. In contrast, the highest volume of complaints came from “sextortion” scams, where criminals exploited personal photos and videos to exploit victims. Additionally, scams also emerged involving cryptocurrency ATMs and kiosks.
Efforts to Combat Cryptocurrency Fraud
Earlier this year, in February, the FBI’s initiative known as “Operation Level Up” reported that it had potentially protected victims from approximately $285 million in crypto fraud between January 2024 and January 2025. Despite this, experts from blockchain analytics firm Chainalysis predict that 2025 could see even more extensive scams, as advancements in generative AI are rendering fraudulent activities easier and cheaper for criminals.
Global Context of Cryptocurrency-related Crime
On a global scale, Chainalysis indicated that illicit activities involving cryptocurrency amassed around $41 billion in 2024, with roughly a quarter of these funds being associated with hacking, extortion, trafficking, or scams. Among the year’s notable crimes were the theft of $1.4 billion from the Bybit exchange in March, alongside cyber attacks linked to North Korean hackers that resulted in over $1.3 billion in losses.
