Crypto scammers are adapting to market changes, with a notable rise in a fraudulent scheme known as “pig butchering,” which has become the most profitable scam of the year. Historically, Ponzi schemes dominated the landscape of crypto crime; however, the current trend indicates that criminals are diversifying their tactics. In addition to “pig butchering,” other scams, including drainers, work-from-home schemes, and address poisoning, have gained traction. A report from blockchain analysis company Chainalysis highlights how scammers are conducting shorter, more lucrative campaigns while continually evolving their methods.
“Pig butchering” is characterized by scammers building a false romantic relationship with their victims to encourage larger investments in fraudulent schemes. Notably, a group of scammers operating from Myanmar, known as KK Park, is reported to have generated at least $101.22 million in 2024, a figure that may also encompass ransom payments. This type of scam frequently involves scammers purchasing profiles on dating platforms like Facebook, Tinder, and Match.com from services based in China to lure potential victims into their traps.
Data shows a marked increase in new scams this year, with 43% of scam inflows directed toward wallets that became active in 2024. This is a significant rise compared to the 30% recorded in 2022. The report from Chainalysis also points out that the average duration for which scams remain active has sharply decreased, from 271 days in 2020 to just 42 days in 2024. This decline is attributed to heightened enforcement efforts and the actions of stablecoin issuers who have begun blacklisting known scam addresses.
In a broader context, data from Immunefi reveals that losses in the cryptocurrency market due to criminal activities have plummeted nearly 20-fold in August 2024. This decline is largely credited to a lack of significant hacks during the month, especially following the extensive hack of the crypto exchange WazirX in July, which amounted to over $230 million. As scammers refine their techniques and the landscape of crypto crime shifts, the overall market is witnessing both an evolution in criminal strategies and a notable decrease in large-scale breaches.
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