According to blockchain analytics company Chainalysis, the emergence of “pig butchering” frauds and the growing application of generative artificial intelligence probably caused cryptocurrency scam profits to reach a record high in 2024.
The company predicted in a research released Thursday that revenue from pig butchering scams, in which scammers build connections with people and persuade them to take part in fraudulent schemes, rose by about 40% in 2024 compared to the previous year.
At least $9.9 billion was made in 2024 from cryptocurrency frauds, but once additional data is available, the amount might reach a record high of $12.4 billion, the report stated.
According to Chainalysis researchers, “Crypto fraud and scams have continued to increase in sophistication,”
The company cited the usage of GenAI and marketplaces that facilitate pig butchering operations as elements that make it simpler and less expensive for scammers to grow their businesses.
In fact, according to Chainalysis, GenAI technology has the ability to “exponentially scale crypto scams”.
Crypto fraud activity has increased by 24% year on average since 2020, according to the business, which uses publicly available transaction data on the blockchain to detect scam revenue.
Over the past few years, as investors sought out spectacular profits and interest in blockchain technology surged, cryptocurrencies—most notably bitcoin—have seen a sharp increase in both price and popularity.
Since U.S. President Donald Trump won the election in November, the industry has grown dramatically in anticipation of a more relaxed regulatory environment.
According to Chainalysis, other highly lucrative scams include crypto drainers, in which scammers act as blockchain projects and steal victims’ crypto wallets, and high-yield investment schemes that promise exorbitant returns.
Following the hack of the Securities and Exchange Commission’s X account in January 2024, a crypto drainer impersonated the authority.
According to Chainalysis, cryptocurrency ATMs have also been popular targets for scammers, with attackers frequently impersonating government officials or customer service representatives to persuade victims to put cash into the machines.
By :- Next Tech Plus
