Crypto Scams Cost $4.6 Billion in 2024, Bitget Warns

In 2024, the crypto industry faced an unprecedented challenge as AI-powered scams resulted in a staggering $4.6 billion in losses, according to Bitget’s anti-scam report. This alarming figure underscores the evolving nature of digital fraud, which has become increasingly sophisticated and undetectable. The report, compiled in collaboration with SlowMist and Elliptic, highlights the urgent need for enhanced security measures and user awareness.

The tactics employed by scammers in 2024 have reached new levels of deception. Deepfakes, fake recruiters, and fraudulent DeFi projects are among the most common methods used to dupe unsuspecting victims. These scams often involve impersonating company executives, public figures, or fictitious recruiters with such realism that they can easily deceive even the most cautious individuals. The result is large-scale, often cross-border scams that make any attempt to recover funds almost illusory.

In response to this growing threat, Bitget has launched a month-long awareness campaign dubbed “Anti-Scam Month.” The initiative aims to educate users about the dangers of AI-enhanced crypto scams and to promote best practices for staying safe in the digital landscape. The campaign underscores the importance of user vigilance and the need for a collective response from the entire crypto ecosystem.

The Bitget report identifies three major trends in modern crypto scams: deepfake impersonation, sophisticated social engineering, and Ponzi schemes disguised as DeFi or NFT projects. Deepfakes, once considered mere pranks, are now used to create ultra-realistic videos of leaders or influencers endorsing fraudulent projects. These videos exploit the authority of public figures to trigger massive fund transfers, making them a highly effective tool for scammers.

Social engineering tactics, such as fake job interviews and romance scams, are also on the rise. These scams are facilitated through platforms like Telegram or X (formerly Twitter), where victims are targeted based on their psychological profiles. The personal nature of these attacks makes them particularly insidious, as they prey on the trust and emotions of their targets.

DeFi and NFT scams are another growing concern. These scams often masquerade as innovative projects promising high returns, using tech jargon that is opaque to the general public. In reality, these projects are often Ponzi schemes, designed to siphon funds from unsuspecting investors. The proliferation of such schemes highlights the need for greater transparency and education within the crypto community.

To combat this wave of fraud, Bitget has activated its Anti-Scam Hub and deployed advanced detection tools. The company has also mobilized its protection fund of over $500 million to assist victims of scams. SlowMist and Elliptic are playing crucial roles in tracking fraud patterns and monitoring laundering circuits, respectively. However, the fight against scams cannot be won by technology alone. Users must also take a proactive stance by learning to identify warning signs and staying informed about the latest scam tactics.

As crypto becomes increasingly mainstream, security can no longer be an optional feature. It must become the new standard, ensuring that users can trade with confidence and peace of mind. Gracy Chen, CEO of Bitget, emphasizes the importance of this shift, stating that the goal is to help users trade smarter, not just faster. This maxim serves as a reminder that in the world of crypto, ignorance can be costly, and vigilance is key to avoiding becoming the next victim of a sophisticated scam.