📰 Table Of Contents
Rising Trends in Crypto Romance Scams
Romance scams emerged as a significant driver of illicit crypto activity in the past year, according to findings by blockchain investigators at Chainalysis.
Growth of “Pig Butchering Scams”
Chainalysis’ 2024 Crypto Crime Report reveals that “pig butchering scams” nearly doubled their revenue in 2023 compared to the previous year, and have surged by 85 times since 2020.
Impact on Victims
Despite an overall decrease in the total value sent to scams, including giveaway, impersonation, and investment scams, romance scams stand out for their detrimental effects on victims.
The average payment size for romance scams was $4,593, with victims often making multiple payments to the same scam address, resulting in larger losses per victim.
Diversification of Scam Types
Other prevalent scam types included giveaway scams with an average payment of $1,113, impersonation scams at $948, and investment scams at $413. NFT scams followed closely with an average payment of $3,095.
Interconnected Scam Tactics
Chainalysis notes that some scams categorized as generic investment scams may also employ romance scam tactics, emphasizing the need for vigilance among readers.
Financial Impact of Crypto Scams
In 2023, crypto scams yielded $4.6 billion, a decrease from $6.5 billion in 2022 and $10.8 billion in 2021.
Exploring Terrorism in Crypto
The report also sheds light on how terrorist organizations leverage crypto transactions, highlighting money services businesses as key enablers of illicit transactions for groups like Hezbollah.
However, estimating terror financing based on fund flows through these services may lead to inflated totals by mixing legal transactions with illicit ones.
Government agencies are urged to utilize off-chain intelligence and blockchain analysis tools to identify and investigate such financial activities.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
