Crypto Scams Surge in 2024, Projected to Reach $12.4 Billion, Says Chainalysis

2024 is poised to be a record-breaking year for crypto scams, with at least US$9.9 billion in illicit revenue, a figure expected to climb to a staggering US$12.4 billion as more fraudulent activities are uncovered. This is part of the 2025 Crypto Crime Report by Chainalysis, which highlights high-yield investment scams (50%) and pig butchering (33%) as the leading fraud types.

Despite high-yield investment scams accounting for half of all scam revenues in 2024, their inflows have dropped by 36% year-over-year (YoY). In contrast, pig butchering scams have seen a 40% YoY revenue increase, with the number of deposits growing by nearly 210%, suggesting an expanding victim pool. However, the average deposit amount to these scams has decreased by 55% YoY.

Jacqueline Burns Koven, Head of Cyber Threat Intelligence at Chainalysis, commented, “The combination of lower payment amounts and increased deposits could indicate a change in strategy for pig butchering scams. Scammers may be targeting more victims, but with smaller amounts.”

The research also points to the rise of employment or work-from-home scams, with scammers increasingly adapting tactics used in romance scams to target vulnerable job seekers. Although employment scams represent less than 1% of total scam revenue, they have caused thousands of people to lose money to fake job platforms.

Koven added, “With the UAE’s ‘Remote Working in the UAE’ initiative, the market for remote and hybrid jobs will rise. While most will be legitimate, scammers are ready to exploit anxious job seekers.”

A key driver of the rise in pig butchering and employment scams is the growing “industrialization” of the fraud ecosystem. In 2024, cryptocurrency payments to scam technology vendors on Huione Guarantee reached US$375.9 million. This marketplace, known for illicit tools, has seen an explosive growth in AI service vendors, with revenues increasing by 1900% since 2021. These vendors provide AI-powered technology that helps scammers impersonate others or generate realistic content to deceive victims.

Additionally, Chainalysis tracked nearly US$95 million in payments to data vendors on the marketplace, which sell stolen personally identifiable information (PII) used for scams. “With easy access to victim databases and AI-powered tools, scammers are better equipped than ever,” said Koven. “Fraud is no longer an unsophisticated act; it’s a thriving, organized ecosystem.”

To combat this growing threat, Koven stressed the need for a coordinated effort from regulators, law enforcement, and the private sector. She emphasized the importance of real-time data, stronger investigative resources, and faster insights to disrupt emerging scams.

As scammers continue to evolve, disrupting their operations will require enhanced collaboration and expertise across all sectors.