As is true with any new innovation, the cryptocurrency market has its advantages and also comes with some deep-rooted context as it contributes to internet-based scams hopping over to the latest ventures in online fraud. These create havoc in society by financially robbing countless people. The United States is no exception. Cryptocurrencies are becoming popular with time and so is the FBI’s Internet Crime Complaint Center (IC3). In its recent press release, the IC3 reported American scam losses due to cryptic investment dives to an astonishing amount of USD 9.3 billion in the first four months of 2024. Not only does this hint at an extreme form of digital investor fraud, but it also indicates a barbaric baby boomer market exploitation. The number also encompasses a 66% increase in comparison to the previous year, suggesting the amount of investors losing money and getting scammed is increasing at an alarming rate.
Elderly Targeted: The Uncontested Cry for Help
The FBI report highlights the weakness shown for older-aged American individuals. The demographic age group of 60+ bears the most brunt, as opposed to composed older adults with obnoxious spending overstretching their mundane income. But as they blindly purchase whatever new innovation comes up, their collective loss of USD 2.84 billion from scam dives in 2024 serves as the true lesson. These figures showcase the plight of the elderly, who become easier targets for scammers as they face barrel lengths of unsophisticated legal and financial decision-making processes that accompany risk-laden investments like cryptocurrency.
Following closely on the heels of this group were those individuals 40 to 49 years of age, who suffered significant financial losses amounting to US$1.46 billion. This suggests that although the seniors are disproportionately impacted, a multitude of other age groups are succumbing to these sophisticated schemes.
The Leading Cause: The Allure of Crypto Investment Scams
More detailed examination of the loss report suggests that crypto investment schemes were the leading culprit. Losses emanating from investment scams indeed soared to an astonishing US$5.8 billion in 2024 alone, attributed in large part to their wildly speculative advertising using digital assets. This number is alarming in itself, but consider this represents a 47 percent increase over the already unacceptable amount in the previous year. These scams clearly are growing in their ability to hook unsuspecting victims.
A Preventative Voice: The FBI’s Consistent Alerts
In 2024, the FBI foresaw the looming threat of cryptocurrency fraud and issued warnings to the public on multiple occasions. These public alerts aimed to make potential victims aware of common warning signs associated with crypto scams and how to avoid being victimized by such schemes. As part of the warnings, the FBI detailed the strategies employed by numerous con artists, such as impersonation and bestowing fraudulent promises of guaranteed high returns, among other scams. Also highlighted were North Korean hacks who sophisticatedly target Web3 firms and launder stolen cryptocurrencies as the FBI put out specific alerts regarding their activities.
Emerging Risks Require Increased Attention
The dramatic rise in losses due to cryptocurrency scams in 2024 exposes the heightened risks and lack of awareness and preventative action in controlling the situation in what is perceived to be blockchain’s digital asset. Cybercriminals targeting especially vulnerable groups such as the elderly alongside high-level investment scams demonstrates the sophisticated level at which these criminals operate. There is a need for individuals and organizations to constantly adapt their policies and designs for protecting the assets as scammers exploit public volatility — which increases volatility in the cryptocurrency market, enabling scammers to attract an even larger pool of investors.
