Crypto Fraud Losses Surge 66% to $9.3 Billion in 2024

The Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) has released its annual report, detailing the extent of cryptocurrency-related fraud in 2024. The report, published on April 23, revealed that Americans suffered a staggering $9.3 billion in losses due to cryptocurrency scams. The IC3 received over 140,000 complaints related to these fraudulent activities, with individuals over the age of 60 being the most affected demographic. This age group accounted for approximately 33,000 complaints and $2.8 billion in losses, highlighting their vulnerability to such schemes.

The report noted that the total losses reported to the IC3 in 2024 reached a new record, with fraud being the primary cause of reported losses. Ransomware remained a significant threat to critical infrastructure, with complaints rising by 9% from the previous year. The losses from cryptocurrency-related fraud increased by roughly 66% compared to 2023, jumping from $5.6 billion to $9.3 billion. The most substantial losses were attributed to crypto investment schemes, while the highest number of complaints were related to "sextortion" schemes, where fraudsters manipulated photos and videos to create explicit content. Other prevalent scams involved the use of crypto ATMs or kiosks.

The report also mentioned that the FBI's "Operation Level Up" had successfully saved potential victims of crypto fraud approximately $285 million between January 2024 and January 2025. However, the increasing sophistication of generative AI is expected to make crypto scams more scalable and affordable for criminals, potentially leading to a higher number of scams in 2025. Globally, illicit crypto activities were estimated to involve roughly $41 billion in 2024, with a significant portion of these funds linked to hacking, extortion, trafficking, or scams. Notable incidents included the theft of $1.4 billion in crypto from the Bybit exchange in March and North Korean hackers stealing over $1.3 billion.