Online scammers are constantly evolving their tactics to maximize their impact while minimizing the risk of being caught. According to blockchain analysts at Chainalysis, online scams are a major area of concern, with billions of dollars in cryptocurrency flowing into illicit accounts so far this year.
One concerning trend identified by Chainalysis is the surge in new scam wallets. In 2024, over 43% of scam inflows went to wallets that were newly active that year, a significant increase from previous years. This indicates a rise in new scams being launched and a decrease in the lifespan of these fraudulent activities. The average number of days that scams remain active has decreased to just 42 days in 2024, down from 271 days in 2020.
The shift towards more targeted scams, such as pig butchering and address poisoning, is attributed to increased enforcement efforts and stablecoin issuers blacklisting scam addresses. Pig butchering, in particular, has emerged as a lucrative cybercrime type, with scammers luring victims into fake relationships on dating sites and tricking them into making bogus investments. One wallet associated with the notorious Myanmar pig butchering compound “KK Park” has raked in $100 million so far this year, potentially including ransom payments from victims’ relatives coerced into running these scams.
Another focal point in the report is Huione Guarantee, an online marketplace exposed in July as a hub for fraud and money laundering. The platform has facilitated over $49 billion in cryptocurrency transactions since 2021 and has become a thriving ecosystem supporting pig butchering operations in Southeast Asia.
As online fraudsters continue to adapt and refine their techniques, it is crucial for individuals to remain vigilant and cautious when engaging in online activities. By staying informed about the latest scams and taking proactive measures to protect personal information and assets, individuals can reduce their risk of falling victim to online fraud.