Key Takeaways:
- Cryptocurrency scammers have moved from long-term schemes to shorter, more targeted campaigns
- “Pig butchering” scams have become the most profitable type
Cryptocurrency scams have taken a new turn in 2024, with criminals rapidly evolving their methods to maximize profits and avoid detection.
According to Chainalysis’ 2024 Crypto Crime Mid-year Update Part 2, scammers are moving away from long-term schemes in favor of shorter, more targeted campaigns, leading to an alarming increase in the sophistication and profitability of these scams.
In 2024, the landscape of cryptocurrency scams has been dominated by a significant shift in strategy. Scammers are now focusing on executing and renewing multiple smaller, simultaneous campaigns, which allows them to keep their operations under the radar while continuing to generate substantial revenue.
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This approach not only makes it harder for law enforcement to track these fraudulent activities but also enables scammers to adapt quickly to new enforcement measures.
One of the most concerning developments is the rise of “pig butchering” scams. These scams involve scammers building trust with victims over time before luring them into fraudulent investments.
The report highlights a notorious Myanmar-based operation, KK Park, which has reportedly netted over $100 million in 2024 alone through such tactics. This operation exemplifies the shift towards more devastating scams of shorter duration, as scammers seek to maximize their returns while minimizing the risk of being caught.
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The Chainalysis report also notes a surge in the creation of new scam wallets, with 43% of scam inflows in 2024 going to wallets activated this year. This trend indicates a growing preference for dynamic and potentially more lucrative campaigns.
Scammers are increasingly purchasing seasoned social media profiles from platforms like Facebook, Tinder, and Match.com, particularly from China-based services, to use in their pig butchering campaigns.
Another notable trend is the significant decrease in the lifespan of scams. Between 2020 and 2024, the average duration of scam operations dropped from 271 days to just 42 days. This reduction is largely attributed to the effectiveness of law enforcement efforts and the actions of stablecoin issuers who are increasingly blacklisting scam addresses.
These measures have forced scammers to rapidly turn over their infrastructure, making them harder to track on-chain.
Despite the trend toward using new wallets, the majority of scam-related funds (57%) still flow into wallets that were activated before 2024.
