Crypto scams are getting smarter and more harmful, according to a recent report from Chainalysis. Criminal groups are now running many smaller campaigns at once. This strategy helps them avoid law enforcement.
In their mid-year update on "Crypto Crime 2024," Chainalysis points out some important trends. They found that scams are not just getting shorter; they are also becoming more profitable. The report highlights how quickly scammers are changing their tactics, especially with the wallets and addresses they use to collect payments from victims.
Interestingly, scams are now more targeted. Instead of elaborate Ponzi schemes, criminals are focusing on simpler, more direct scams. Many of the digital wallets linked to these scams—especially those called "pig-butchering" scams—are new. This suggests that fresh scams are on the rise.
So, what is "pig-butchering"? It's a long-term scam where the criminal builds a relationship with the victim, often pretending to be a romantic partner. They gain the victim's trust and then trick them into handing over money. Chainalysis notes that this type of scam is still the biggest money-maker.
The report also shows a significant drop in the average lifespan of scams. In 2020, scams lasted around 271 days. This year, that number has plummeted to just 42 days. Scammers are adapting quickly and finding ways to carry out more damaging scams in less time.
And the money involved is staggering. One pig-butchering operation based in Myanmar, first spotted in 2022, has pulled in over $101 million this year alone. That's a lot of cash from a single scam.