Crypto Scams Surge: $12 Billion Expected in 2024, Southeast Asia Hub

Crypto fraud revenue is projected to reach $12 billion in 2024, with pig butchering scams accounting for a significant portion of this figure. Southeast Asia has emerged as a hub for these scams, with platforms like Huione Guarantee facilitating fraudulent activities, including money laundering and data theft.

According to a recent report by Chainalysis, crypto scams generated $9.9 billion in revenue in 2024, with pig butchering scams responsible for 33.2% of the total. The report warns that the actual figure could be even higher, potentially exceeding $12 billion. The number of pig butchering incidents has increased by nearly 40% year over year.

The report highlights the sophistication of scammers, who now use illicit services like Huione Guarantee, a Telegram-based marketplace for Southeast Asian fraudsters. This platform provides scammers with money laundering tools, stolen personal data, and social media management services. Since 2021, Huione Guarantee has processed over $70 billion in crypto transactions, solidifying its role in the fraud ecosystem.

Chainalysis also notes the growing use of generative AI in enhancing scam tactics. This technology enables fraudsters to impersonate victims, bypass identity verification, and create convincing fake investment platforms. Other crypto fraud methods, such as address poisoning, crypto drainers, livestream scams, and employment scams, have also seen substantial growth in 2024.

The use of cryptocurrency ATMs in scams has surged, with the US FBI reporting a tenfold increase in consumer losses since 2020. Scammers exploit these ATMs to receive funds from victims who believe they are making legitimate payments. In one case, scammers deceived a US citizen into depositing $15,000 into Bitcoin ATMs under the pretense of fixing a computer virus.

The growing complexity and scale of crypto scams pose a significant challenge in the digital asset landscape. As scams evolve, law enforcement agencies must develop more stringent and effective measures to combat these illicit activities. Investors and stakeholders must remain vigilant and prioritize safety in their crypto engagements to mitigate risks associated with emerging fraud tactics.