Surge in Crypto Scams Marks 2024 as High-Risk Year, 43% of YTD Scams Target New Wallets
Analysis of crypto flows to just one popular online fraud shop implies that in the last two years alone, scammers may have purchased up to 2.1million established social media profiles to target victims
Cryptocurrency scams have surged in 2024, with billions of dollars in inflows, making them one of the most significant areas of crypto-related illicit activity this year, according to new research by blockchain data firm Chainalysis.
The report highlights that 43% of the total scam inflows year-to-date (YTD) have gone to wallets that only became active in 2024, indicating a sharp rise in new scams. This is a notable increase compared to 2022, when just 29.9% of YTD scam inflows were linked to newly active wallets.
The research also reveals a significant decrease in the average lifespan of scams. Scams that started in 2020 had an average lifespan of 271 days, while those beginning in 2024 have only lasted an average of 42 days.
This trend suggests that scammers are shifting from elaborate Ponzi schemes to more targeted campaigns, such as romance scams or address poisoning, according to Eric Jardine, Cybercrime Research Lead at Chainalysis.
In its 2024 Crypto Crime Report, Chainalysis estimated that romance scams—also known as pig butchering scams—have had the most severe impact on victims, with the average payment size being particularly high. The data also shows that this type of scam activity has grown by 85 times since 2020. From 2022 to 2024, one fraud operation received $10.5 million from scammers involved in romance scams. This operation reportedly sold “seasoned” social media profiles for $5 to $20 each, potentially supplying scammers with up to 2.1 million profiles to target victims.
“The shift away from Ponzi schemes implies that scammers are now using more interpersonal channels, such as social media or text messages, to reach victims,” Jardine explained. He noted that while these tactics make scammers harder to track and complicate victim restitution, there have been successful cases involving asset freezes and law enforcement intervention. Jardine cautioned that anyone could be a target of these scams, and it’s essential to be wary of unexpected communications, especially when there is a request for money.
Chainalysis also emphasized the value of blockchain transparency in combating crypto crime. “We closely monitor the crypto crime ecosystem in collaboration with our partners to expose and disrupt illicit activities,” Jardine concluded. He reaffirmed the company’s commitment to working with law enforcement and cryptocurrency exchanges to prevent and mitigate the impact of these scams.
