Last year’s surge in cryptocurrency scams surpassed $1.7 billion in global losses, nearly doubling the previous record set in 2023. The U.S. Federal Trade Commission reported the figure on Thursday, citing a sharp rise in investment fraud linked to digital assets. Losses from crypto-related crimes now account for nearly half of all reported fraud cases in the financial sector. The data reflects a trend where fraudsters exploit the anonymity and volatility of cryptocurrencies to lure victims.
Most of the losses came from investment scams, where victims were promised high returns on crypto investments. The FTC noted that social media and messaging apps became primary tools for scammers to contact potential victims. In one case, a fake crypto exchange promised returns of 30% monthly, attracting over 5,000 investors before shutting down. Another scheme involved a fraudulent NFT project that collected $24 million from investors before disappearing.
The rise in crypto fraud coincides with increased adoption of digital assets. Norway’s Finanstilsynet warned in December that fraudsters are targeting younger investors, often using fake celebrity endorsements. The agency reported a 40% increase in complaints about crypto scams in 2024 compared to the previous year. Authorities urge caution when investing in cryptocurrencies, especially those promoted through unsolicited messages.
Experts attribute the surge to the lack of regulation in many jurisdictions. The Financial Action Task Force has called for stricter oversight of crypto platforms to prevent money laundering and fraud. Meanwhile, law enforcement agencies in the U.S. and Europe have launched operations targeting major crypto fraud rings. In Norway, police have opened 12 new investigations into crypto-related crimes this year alone.
Investors are advised to verify the legitimacy of crypto platforms before transferring funds. The FTC recommends checking for regulatory licenses and avoiding investments that promise guaranteed returns. Scammers often use pressure tactics, urging victims to act quickly to avoid missing out on a supposed opportunity.
Source: e24.no