According to a new research report co-authored by Bitget, SlowMist, and Elliptic, over $4.6 billion was lost to scams in the crypto industry in 2024, marking a 24% increase from the previous year.
Most Common Frauds
The report revealed that nearly 40% of high-value frauds in 2024 involved deepfake technology. Scammers are using AI to create convincing videos of public figures like X owner Elon Musk promoting fake investments on social media platforms. In one high-profile case, Hong Kong police arrested 31 members of a syndicate that used AI-generated videos of various crypto executives to steal $34 million.
According to the survey, bad actors are also using AI to bypass KYC procedures, forge customer service chats, and simulate platform dashboards to fake legitimacy. Even Zoom meetings are being weaponized, with scammers sending fake invitations with links to malicious software.
Social engineering remains a major threat by exploiting people’s psychological vulnerabilities. This is done through AI-powered arbitrage bot scams that promise easy profits through ChatGPT-generated code while directing users to interact with fake interfaces that steal their funds.
Anti-Scam Measures
Bitget, SlowMist, and Elliptic have announced the launch of an Anti-Scam Hub to respond to the growing threat posed to crypto by fraudsters. The initiative is aimed at tracing illicit funds, disrupting phishing networks, and identifying deceptive behavior across blockchains.
"Criminals are constantly evolving their methods of attack, using AI and finding new ways to scale their activities," said Arda Akartuna, Lead Crypto Threat Researcher at Elliptic. "This means that reciprocally, we are also working to scale our technology and blockchain capabilities to track and identify the new methods criminals are using."
A protection fund worth more than $300 million is also being deployed to mitigate user risks.
General Conclusions
The year 2024 saw a significant rise in crypto-related fraud, highlighting the necessity for more effective protective measures for users. Modern fraud schemes are becoming increasingly sophisticated, requiring a robust response from the crypto community and security solution developers.
The research highlights the importance of raising user awareness regarding fraud risks and the need to implement new security measures to protect investments in crypto assets.
