What happened?
The FBI reported a significant rise in cryptocurrency fraud, with over 149,000 complaints in 2024 leading to $9.3 billion in losses, primarily from investment scams and extortion. This marks a 66% increase from the previous year’s $5.6 billion. Ransomware targeting critical infrastructure also saw a notable rise, with complaints growing by 9% compared to 2023.
Who does this affect?
Elderly Americans were the most affected demographic, with those aged 60 and older reporting over $2.83 billion in losses. Victims within the 50 to 59 age group also suffered significant losses totaling $1.18 billion. California experienced the highest state-level losses at over $1.39 billion, followed by Texas with $738 million in losses.
Why does this matter?
The substantial increase in crypto fraud impacts both individual investors and the broader financial market, highlighting vulnerabilities that bad actors exploit. Investment fraud, particularly schemes like “pig butchering,” constitute a primary threat by targeting victims through relationship-building to promote fraudulent crypto investments. The persistence of these scams underscores the need for enhanced regulation and oversight in the cryptocurrency space to safeguard against significant financial losses and potential personal crises, as evidenced by suicide intervention referrals.