Losses due to romance baiting scams, also known as pig butchering scams, saw a significant increase of 40% year-on-year in 2024, making up a third of total crypto fraud revenue, as reported by Chainalysis.
In a timely release just before Valentine’s Day, the blockchain analytics firm shed light on the dark side of dating apps through its 2025 Crypto Crime Report. Romance baiting typically involves scammers approaching vulnerable individuals on dating platforms, grooming them, and then convincing them to invest in fraudulent schemes.
The surge in deposits to pig butchering scams by 210% YoY in 2024 points to a growing number of victims falling prey to large-scale scam operations in south-east Asia. Interestingly, while the average deposit amount to these scams decreased by 55% YoY, the overall increase in deposits suggests a shift in strategy towards targeting more victims with smaller payments.
Some pig butchering scam syndicates are now branching out into other fraudulent schemes like work-from-home scams, aiming for quicker but lesser rewards. The report also highlights scammers adapting to the traceability of cryptocurrency by directing victims to contact “customer service” for crypto addresses or opting for alternative payment services.
Overall, 2024 is projected to be a record year for crypto fraud, with at least $9.9bn in fraudulent activities detected on-chain, expected to rise to $12.4bn upon final calculations. High-yield investment scams made up the largest portion of these losses at 50%, despite a 37% decrease from the previous year.
Crypto drainers accounted for 9.5% of the total fraud revenue, witnessing a whopping 170% annual increase, while deposits to scam crypto addresses grew by 55% in size and 75% in number YoY. The proliferation of scam infrastructure providers like Huione Guarantee in Cambodia and the utilization of generative AI to bypass identity checks have contributed to the professionalization of fraudulent activities.
Law enforcement agencies are also noting a surge in the use of crypto ATMs by criminals seeking to cash out their illicit gains. The report emphasizes the need for collaborative efforts from individuals, law enforcement, governments, and regulators to combat the rising tide of crypto fraud effectively.
In conclusion, staying vigilant and informed about the evolving tactics of scammers is crucial in safeguarding oneself against falling victim to these elaborate schemes in the digital realm.