$5.8bn Lost To Crypto Investment Scams In 2024 — FBI

The Federal Bureau of Investigation (FBI) has revealed that investment scams accounted for $5.8 billion, representing over 50 percent of all reported crypto losses in 2024.

In a 47-page report, the FBI emphasised cryptocurrency’s central role in cybercrime losses, citing nearly 150,000 complaints linked to fraudulent crypto activities.

According to data from the FBI’s Internet Crime Complaint Centre (IC3), total internet crime losses skyrocketed to $16.6 billion, a 33% increase from 2023.

It noted that investment scams emerged as the most damaging among the various schemes, with reported losses totalling $5.8 billion.

The FBI report added that crypto-related scams contributed $9.3 billion, reflecting an astonishing 66% year-over-year surge.

Many of these investment fraud cases involved “pig butchering” scams, a manipulative scheme where criminals cultivate fake online relationships to coerce victims into investing in fraudulent crypto platforms.

The report emphasised the significant effect of cryptocurrency scams on older Americans, noting that individuals aged 60 and older have reported losses surpassing $2.8 billion, which makes them the most targeted demographic.

The FBI said it had initiated Operation Level Up in early 2024 to combat the rising trend, identifying more than 4,300 victims of crypto-related scams.

However, 76% of those contacted were unaware they had been victimised, indicating the sophistication of cybercriminal tactics.

It further stressed that scammers are progressively using QR codes, crypto ATMS, and stablecoins, like Tether’s USDT and the decentralised stablecoin DAI, to deceive users.

They sometimes employ AI-generated identities to pose as financial advisors or acquaintances online.

LEADERSHIP recalls that many Nigerians recently lost huge amounts in investment scams involving a fraudulent crypto platform called CBEX when it abruptly shut out its investors mid April.