FBI ties over $9b in 2024 fraud losses to crypto scams, led by ‘pig butchering’ schemes

Investment scams involving crypto accounted for more than 50% of all reported crypto losses in 2024, according to the FBI’s latest report.

Cybercrime involving cryptocurrencies hit record highs in 2024, with the FBI’s Internet Crime Complaint Center reporting $16.6 billion in total internet crime losses — a 33% jump from 2023 — including $9.3 billion tied to crypto-related scams, up 66% year-over-year.

In the 47-page report, the FBI stated that cryptocurrency played a “central role” in cybercrime losses in 2024, noting that nearly 150,000 complaints involved cryptocurrencies.

Investment scams caused the most damage, resulting in $5.8 billion in reported losses. Many of these cases involved “pig butchering,” where scammers build fake online relationships and trick victims into investing in fraudulent crypto platforms.

Older Americans were hit hardest. Victims aged 60 and older reported over $2.8 billion in crypto scam losses, the most of any age group. In a bid to counter the trend, the FBI launched Operation Level Up in early 2024, where more than 4,300 victims were identified and 76% of those were unaware at the time that the agency contacted them that they were in fact being victimized.

Analysts at blockchain forensic firm TRM Labs noted in a research note that scams remained the “dominant form of illicit activity on-chain in 2024,” with investment and financial grooming scams causing billions in losses. TRM Labs identified “at least $10.7 billion in crypto funds sent to fraudulent schemes, with thousands of new phishing and investment scam websites appearing monthly.”

The analysts added that scammers keep using QR codes, crypto ATMs, and stablecoins like Tether’s USDT (USDT) or decentralized stablecoin DAI (DAI) to reach victims, often through AI-generated personas.