Attention! Cryptocurrency scams are becoming more and more sneaky. According to Chainalysis, a pioneer in Blockchain data platforms, cryptocurrency romance scams, known as “Pig Butchering,” are experiencing a worrying rise in 2024. These scams, which take advantage of victims’ trust and feelings, have become increasingly sophisticated and damaging.
By the way, “Pig Butchering” – known for the way bad actors claim to “fatten” their victims to extract as much value as possible – is a big and growing problem, with a significant nexus to cryptocurrencies.
In reality, romance scammers start by building a relationship over time with the victim, often by initiating contact, pretending to have texted a wrong number or through dating apps. As the relationship deepens, the scammer will eventually pressure the victim into investing money in a fake investment opportunity, and will continue to do so until they eventually cut off contact.
As a result, Chainalysis has published the report entitled “The 2024 Crypto Crime Report” which indicates that romance scams have increased 85-fold since 2020.
📣 Part 2 of our mid-year crypto crime update is here! We discuss the latest scam trends, review on-chain activity related to child sexual abuse material (CSAM), and examine Huione Guarantee, an online marketplace exposed for facilitating cybercrimes. https://t.co/rJBtYVk7Gb
— Chainalysis (@chainalysis) August 29, 2024
Eric Jardine, head of criminal investigation at Chainalysis, said: “We are closely monitoring the crypto crime ecosystem, working with our partners, to shed light on illicit activity. We will continue to work with law enforcement to disrupt and prevent these scams through our tools.”
Stolen hearts and lost cryptocurrencies: The rise of romance scams in 2024
Indeed, Chainalysis says that from 2022 to 2024, a well-known fraud platform received $10.5 million from scammers who engaged in this type of practice. “Experienced” social media profiles were sold on this website, at a price of $5 and $20 per account. The scammers purchased between 525,000 and over 2 million social media profiles that were used to attack victims.
On the other hand, an impressive fact is that 43% of crypto scams recorded in 2024 have targeted wallets created this year. This significant increase suggests that scammers are increasingly targeting new and less experienced users, taking advantage of their vulnerability. In comparison, in 2022, only 29.9% of attacks were concentrated on recently created wallets.
Fraudulent wallet entries. Source: Chainalysis
Now, between 2020 and 2024 so far, the average number of days that scams were active decreased significantly, starting with 271 days for scams that started in 2020 and ending with 42 days so far for scams that started in 2024.
Average scam duration per year. Source: Chainalysis
Cybercriminals change tactics: From Ponzi to Heart
On this issue, Eric Jardine revealed shocking information: “Scammers are moving away from Ponzi schemes that target a wide network to more targeted campaigns, such as romance scams.”
She added: “There is a more personal approach to victims, through social media or text messages. This makes it harder to track down the scammers, although there are cases where assets are frozen and law enforcement is involved. This also serves as a reminder that anyone can be a target.”
Finally, Eric Jardine stressed: “It is important to remain alert and be especially cautious with personal communications. The moment a request for the transfer of monetary funds is made, alarm bells should go off.” Don’t let your guard down!
I leave with this quote from Erin West: “Victims have to deal not only with the loss of money, but with an often heartbreaking betrayal by a person they have come to love and trust.”
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