Crypto Scam Revenue 2024: Pig Butchering Grows Nearly 40% YoY as Fraud Industry Leverages AI and Increases in Sophistication www.chainalysis.com/blog/2024…

According to Chainalysis metrics today, it looks like 2024 saw a drop in scam revenue; however, 2024 was likely a record year as these figures are lower-bound estimates based on inflows to the scam addresses Chainalysis identified up to today. A year from now, these totals will be higher, as Chainalysis identifies more illicit addresses and incorporate their historic activity into the estimates.

Since 2020, Chainalysis' annual estimates of scam activity have grown by an average of 24% between annual reporting periods. Assuming a similar growth rate between now and next year’s Crypto Crime Report, Chainalysis annual totals for 2024 could surpass the $12 billion threshold.

In the last few years, crypto fraud and scams have continued to increase in sophistication, as the fraud ecosystem becomes more professionalized. Operations like Huione Guarantee, a peer-to-peer (P2P) marketplace, offer a host of illicit services that support pig butchering scamming operations and serve as a one-stop-shop for scammers’ needs. These services range from the technology infrastructure required to initiate scams to money laundering services for obfuscating illicit activity and cashing out.