Pig butchering scams have experienced a significant rise in 2024, contributing to a record year for crypto fraud, with scammers anticipated to generate at least $12.4 billion in illicit revenue. According to Chainalysis, high-yield investment scams and pig butchering scams account for the largest share of scam revenues, with the latter seeing a 40% increase compared to the previous year. In contrast, high-yield investment scams, although still a major contributor, have seen a decrease in revenue and activity. The number of victims targeted by pig butchering scams has grown substantially, with deposits to these scams increasing by nearly 210% year-over-year.
The shift in scam strategies is evident in the changing patterns of payment amounts and victim targeting. Scammers are reportedly lowering the average deposit amount they request while expanding the pool of potential victims. This suggests that criminals are focusing less on priming individual targets and more on reaching a broader audience. Chainalysis experts noted that scammers are adopting more rapid and aggressive tactics to exploit victims in a wider range of scenarios, including work-from-home scams, despite these still representing a small portion of the overall fraud activity.
The growth of pig butchering and employment scams is attributed in part to the expanding “industrialization” of the fraud ecosystem.
A significant portion of scam-related payments is funneled into technology vendors that provide scam services, particularly on platforms like Huione Guarantee. This marketplace for illicit tools has seen substantial growth, with scammers using AI technology to enhance their operations, making it easier to deceive victims. AI-powered tools have enabled fraudsters to create realistic content, impersonate others, and improve the overall effectiveness of their schemes.
As scams evolve and become increasingly sophisticated, the need for coordinated efforts to combat them has become more urgent. Chainalysis highlighted the exponential growth in the use of AI technology to assist fraudsters, along with the rise of data vendors selling stolen personal information to aid scams. To address the growing threat, experts emphasize the importance of enhancing fraud detection, enforcement, and regulatory frameworks, suggesting that both public and private sectors must work together to disrupt these complex criminal networks.
