Blockchain analytics company, Chainalysis, reported a significant rise in "pig butchering" and crypto scams in 2024, pushing revenues to an estimated record high of $9.9 billion to possibly $12.4 billion, representing a near 40% increase. This surge in fraudulent activities comes in the wake of advancement in GenAI technology and marketplaces that support pig butchering operations that facilitate econ omical scaling of scams.

The boom in cryptocurrencies, like bitcoin, and heightened interest in blockchain technology has likely contributed to this rise in scam activity.

According to the firm, the crypto sector has seen an upswing since the November elections, with investors optimistic about a favorable regulatory environment. Other noteworthy scams cited by Chainalysis include crypto drainers, involving scammers posing as blockchain projects to gain access to victims' wallets, and high-yield investment scams involving unrealistic returns promises.

The report also warns against crypto ATMs scams where perpetrators impersonate government or customer service officials to lure victims into depositing cash. Indeed, as cryptocurrencies continue to gain traction, the sophistication and frequency of scams are concurrently on the rise.

- CyberBeat