Elderly Americans Face Significant Financial Impact from Cryptocurrency Scams, FBI’s IC3 Reveals $2.8 Billion in Losses

The FBI’s Internet Crime Complaint Center (IC3) disclosed in its 2024 annual report a concerning uptick in both the number and severity of fraud cases involving cryptocurrency.

Throughout the year, the IC3 documented over 140,000 complaints associated with cryptocurrency, resulting in staggering financial damages totaling $9.3 billion.

Disturbing Developments

A significant share of these financial losses was attributed to individuals aged 60 and older, who submitted approximately 33,000 complaints and incurred a staggering total loss of $2.8 billion. This demographic experienced the most substantial growth in both reported cases and financial impact.

The report indicated a remarkable increase in losses compared to the previous year, showing a rise of 66% over 2023, which recorded total losses of $5.6 billion. Investment scams centered around cryptocurrency emerged as the leading cause of these financial setbacks. Additionally, the report brought to light other fraudulent activities, including sextortion, where perpetrators coerce victims using personal information, and scams involving cryptocurrency ATMs.

Furthermore, ransomware incidents, a persistent threat, demonstrated a 9% increase in 2024, underscoring a growing risk to critical systems. In summary, fraud and crypto scams accounted for the bulk of the rise in cybercrime reports, particularly impacting older adults who are especially susceptible to these serious digital schemes.

Conversely, pig butchering scams, which previously mainly targeted seniors, are increasingly impacting younger populations, specifically individuals aged 30 to 49. A recent investigation examined 150 significant cryptocurrency platforms, uncovering more than 200,000 scam incidents and financial losses totaling $5.5 billion in 2024.

The analysis concentrated on Ethereum-based fraud, revealing considerable scams across a variety of venues, including prominent exchanges, a crypto-friendly banking institution, and platforms for institutional trading. Although the impact varied, the trend is unmistakable: younger individuals are becoming primary targets.

Operation Level Up

In response to the escalating threat of cryptocurrency investment fraud, ‘Operation Level Up’ was launched with the help of FBI agents and the US Secret Service. This scheme, known as pig butchering, involves fraudsters cultivating online connections with victims to persuade them to invest in fake cryptocurrency ventures.

Through this initiative, 4,323 individuals affected by cryptocurrency investment fraud were alerted to the deception. Notably, 76% of these victims did not realize they had been defrauded. The estimated financial recovery for these individuals reached $285.6 million. Moreover, 42 victims were referred to an FBI victim specialist for assistance related to potential suicidal ideation.