Crypto Scams Surge: Pig Butchering Schemes Target Unemployed

Crypto scams, particularly pig butchering schemes, have seen a significant surge in activity, according to a recent report by blockchain analytics firm Chainalysis. The report highlights a worrying trend of increasing illicit revenue and a broader victim pool, with scammers adapting their tactics to target the unemployed with deceptive work-from-home job offers.

The firm's data indicates that the number of crypto deposits into pig butchering scams, also known as romance scams, surged by approximately 210% in 2024. This suggests an expansion in the victim pool for such scams, which typically originate from Southeast Asia but now involve scammers dispersed globally. The average deposit amount to pig butchering scams fell by 55% from the previous year, pointing to a shift in the scammers' strategies.

Chainalysis also identified a fraudulent job site that impersonated a record label to offer fake employment opportunities. This site transferred crypto to consolidation wallets linked to pig butchering scams, further highlighting the sophisticated nature of these operations. The report noted an increase in other types of crypto scams in 2024, including address poisoning, crypto drainers, livestream scams, and sextortion.

The firm estimates that crypto scams extracted at least $9.9 billion from victims in the past year. A significant portion of illicit funds was channeled through Huione Guarantee, a peer-to-peer marketplace affiliated with the Cambodian Huione Group. Since 2021, Huione Guarantee has processed $70 billion in crypto transactions, with onchain data suggesting its extensive use by illegal crypto schemes.

According to Chainalysis, Huione Guarantee has become a hub for illicit actors, providing technology, infrastructure, and resources crucial for conducting scams. This includes assets such as targeted data lists, web hosting, social media accounts, content creation services, and AI software. In 2024, scam vendors using Huione amassed at least $375.9 million in crypto, with AI service vendors' revenue skyrocketing by 1900%.

The data indicates a surge in the use of AI to create hyper-realistic images or videos for impersonation, as well as the sale of stolen personal data to target vulnerable individuals. The report also mentioned that last year