Latest news with #2025CryptoCrimeReport
Time of India
24-04-2025
- Business
- Time of India
Rethinking crypto: A safe and transparent financial frontier
Crypto has often been misunderstood, with its early history characterized by associations with illicit activities. Cases of virtual digital assets being used in money laundering dominated public discourse, leading to widespread skepticism. Blockchain technology itself was seen as an enabler of criminal activity, perceived as anonymous and beyond the reach of authorities. These outdated views overlook the significant strides made within the crypto industry. The share of transactions linked to unlawful activities has steadily decreased, supported by robust advancements in security and regulatory compliance. The year 2024 marked a turning point for the sector, with significant progress in dismantling misconceptions about crypto's role in illegal activities. Thanks to the efforts of crypto exchanges and law enforcement agencies, the crypto landscape has become progressively safer. According to the 2025 Crypto Crime Report by Chainalysis, illicit transactions accounted for only 0.14% of total on-chain activity in 2024, down from 0.61% in 2023. This downward trend reinforces the impact of enhanced security measures and industry-wide compliance initiatives. This trend reflects concerted efforts by the industry to enhance security measures and enforce compliance. Blockchain's inherent transparency seems to have proven to be a deterrent for bad actors, offering a stark contrast to traditional financial systems where tracing illicit funds can be more challenging. Research continues to highlight that cash remains the preferred medium for criminal transactions, as evidenced by recent findings from the Crypto Information Sharing and Analysis Center. The transparency of blockchain technology is one of its most effective tools against crime. Every transaction is recorded on an immutable public ledger, making it easier for investigators to trace and track the movement of funds compared to conventional financial systems. Improvements in blockchain monitoring tools have enabled more precise and efficient identification of suspicious activities. These tools allow for real-time monitoring, ensuring that anomalies are flagged and addressed promptly. As a result, crypto transactions have become secure, underpinned by technology that supports accountability and traceability. While access to protected user data will always require proper legal processes, blockchain's transparent design significantly enhances the ability of law enforcement and regulatory agencies to trace and recover assets. By offering unparalleled visibility into transaction histories, blockchain supports efforts to combat financial crime more effectively than traditional systems, which often face delays due to complex legal requirements for accessing financial data. The ability of law enforcement to address crypto-related crimes has advanced significantly in recent years. Through targeted training programs and close collaboration with blockchain experts, agencies are now better equipped to identify and disrupt criminal networks. Last year, global law enforcement agencies handled a growing volume of cases involving stolen or illicitly acquired crypto. Collaborative efforts between these agencies ,blockchain analytics firms, and industry partners have led to the successful dismantling of major criminal operations. These initiatives demonstrate the effectiveness of partnerships in addressing challenges associated with digital assets. Proactive measures, such as establishing standardized security protocols and sharing best practices, have reinforced the industry's commitment to maintaining a secure and transparent environment. These advancements ensure that the broader crypto ecosystem remains resilient against threats. As misconceptions fade, blockchain and crypto are gaining recognition as integral components of a modern, innovative financial ecosystem. In 2025, the industry is expected to become more secure and sustainable, driven by significant investments in compliance measures by crypto exchanges. These efforts, alongside advancements in blockchain technology, are set to enhance security protocols and create a safer environment for all participants.
TECHx
14-02-2025
- Business
- TECHx
Crypto Scams Surge in 2024, Projected to Reach $12.4 Billion, Says Chainalysis News Desk - 14/02/2025 Share2024 is poised to be a record-breaking year for crypto scams, with at least US$9.9 billion in illicit revenue, a figure expected to climb to a staggering US$12.4 billion as more fraudulent activities are uncovered. This is part of the 2025 Crypto Crime Report by Chainalysis, which highlights high-yield investment scams (50%) and pig butchering (33%) as the leading fraud types.Despite high-yield investment scams accounting for half of all scam revenues in 2024, their inflows have dropped by 36% year-over-year (YoY). In contrast, pig butchering scams have seen a 40% YoY revenue increase, with the number of deposits growing by nearly 210%, suggesting an expanding victim pool. However, the average deposit amount to these scams has decreased by 55% YoY.Jacqueline Burns Koven, Head of Cyber Threat Intelligence at Chainalysis, commented, 'The combination of lower payment amounts and increased deposits could indicate a change in strategy for pig butchering scams. Scammers may be targeting more victims, but with smaller amounts.'The research also points to the rise of employment or work-from-home scams, with scammers increasingly adapting tactics used in romance scams to target vulnerable job seekers. Although employment scams represent less than 1% of total scam revenue, they have caused thousands of people to lose money to fake job platforms.Koven added, 'With the UAE's ‘Remote Working in the UAE' initiative, the market for remote and hybrid jobs will rise. While most will be legitimate, scammers are ready to exploit anxious job seekers.'A key driver of the rise in pig butchering and employment scams is the growing 'industrialization' of the fraud ecosystem. In 2024, cryptocurrency payments to scam technology vendors on Huione Guarantee reached US$375.9 million. This marketplace, known for illicit tools, has seen an explosive growth in AI service vendors, with revenues increasing by 1900% since 2021. These vendors provide AI-powered technology that helps scammers impersonate others or generate realistic content to deceive victims.Additionally, Chainalysis tracked nearly US$95 million in payments to data vendors on the marketplace, which sell stolen personally identifiable information (PII) used for scams. 'With easy access to victim databases and AI-powered tools, scammers are better equipped than ever,' said Koven. 'Fraud is no longer an unsophisticated act; it's a thriving, organized ecosystem.'To combat this growing threat, Koven stressed the need for a coordinated effort from regulators, law enforcement, and the private sector. She emphasized the importance of real-time data, stronger investigative resources, and faster insights to disrupt emerging scams.As scammers continue to evolve, disrupting their operations will require enhanced collaboration and expertise across all sectors.
Crypto Scams Surge in 2024, Projected to Reach $12.4 Billion, Says Chainalysis 2024 is poised to be a record-breaking year for crypto scams, with at least US$9.9 billion in illicit revenue, a figure expected to climb to a staggering US$12.4 billion as more fraudulent activities are uncovered. This is part of the 2025 Crypto Crime Report by Chainalysis, which highlights high-yield investment scams (50%) and pig butchering (33%) as the leading fraud types. Despite high-yield investment scams accounting for half of all scam revenues in 2024, their inflows have dropped by 36% year-over-year (YoY). In contrast, pig butchering scams have seen a 40% YoY revenue increase, with the number of deposits growing by nearly 210%, suggesting an expanding victim pool. However, the average deposit amount to these scams has decreased by 55% YoY. Jacqueline Burns Koven, Head of Cyber Threat Intelligence at Chainalysis, commented, 'The combination of lower payment amounts and increased deposits could indicate a change in strategy for pig butchering scams. Scammers may be targeting more victims, but with smaller amounts.' The research also points to the rise of employment or work-from-home scams, with scammers increasingly adapting tactics used in romance scams to target vulnerable job seekers. Although employment scams represent less than 1% of total scam revenue, they have caused thousands of people to lose money to fake job platforms. Koven added, 'With the UAE's 'Remote Working in the UAE' initiative, the market for remote and hybrid jobs will rise. While most will be legitimate, scammers are ready to exploit anxious job seekers.' A key driver of the rise in pig butchering and employment scams is the growing 'industrialization' of the fraud ecosystem. In 2024, cryptocurrency payments to scam technology vendors on Huione Guarantee reached US$375.9 million. This marketplace, known for illicit tools, has seen an explosive growth in AI service vendors, with revenues increasing by 1900% since 2021. These vendors provide AI-powered technology that helps scammers impersonate others or generate realistic content to deceive victims. Additionally, Chainalysis tracked nearly US$95 million in payments to data vendors on the marketplace, which sell stolen personally identifiable information (PII) used for scams. 'With easy access to victim databases and AI-powered tools, scammers are better equipped than ever,' said Koven. 'Fraud is no longer an unsophisticated act; it's a thriving, organized ecosystem.' To combat this growing threat, Koven stressed the need for a coordinated effort from regulators, law enforcement, and the private sector. She emphasized the importance of real-time data, stronger investigative resources, and faster insights to disrupt emerging scams. As scammers continue to evolve, disrupting their operations will require enhanced collaboration and expertise across all sectors.
Channel Post MEA
14-02-2025
- Business
- Channel Post MEA
Pig Butchering Scams Surge 40% in 2024: Chainalysis
2024 is set to be a record-year for scammers who received at least US$9.9 billion in crypto revenues from their illicit activities – a figure that is estimated to rise to an all-time high of US$12.4billion as ongoing analysis uncovers more illicit activity. These findings are part of Chainalysis' 2025 Crypto Crime Report research into scams, which also highlighted high-yield investment scams (50%) and pig butchering (33%) to be the two most prevalent fraud and scam types. Interestingly, despite pulling in half of all scam revenue in 2024, high-yield investment scam inflows declined by 36% YoY. On the other hand, pig butchering revenue increased by almost 40% YoY, and the number of deposits to pig butchering scams grew nearly 210% YoY, potentially indicating an expansion of the victim pool. Conversely, the average deposit amount to pig butchering scams declined 55% YoY. Offering insight into these findings, Jacqueline Burns Koven, Head of Cyber Threat Intelligence at Chainalysis said, 'The combination of lower payment amounts and increased deposits could indicate a change in strategy for pig butchering scams. Scammers could be spending less time priming targets, and therefore, receiving smaller payments, in exchange for targeting more victims.' This evolution of scammers' strategies is further evidenced in the growing number of employment or work-from-home scams that Chainalysis researchers observed. Though employment scam inflows represented less than 1% of total on-chain value that scams received last year, thousands of people have unwittingly paid into fake job platforms. 'On the back of landmark initiatives, such as the UAE government's recent ' Remote Working in the UAE' report, the country's job market can be expected to see a rise in remote and hybrid work opportunities. While the majority of these will be legitimate, scammers will no doubt be keen to take advantage. The tools and techniques they have been honing in recent years with romance scams, can be easily adapted to now trick anxious, perhaps vulnerable, job seekers,' Koven stated. A major contributor to the growth in pig butchering and employment scams is the ongoing 'industrialisation' of the fraud ecosystem, epitomised in the staggering US$375.9 million in cryptocurrency payments made to scam technology vendors on Huione Guarantee in 2024 alone, one of the most prolific marketplaces for illicit tools and services. When comparing crypto flows from 2021 through 2024 based on a compound annual growth rate, Huione scam infrastructure providers' revenue has increased exponentially, with AI service vendors' revenue growing by 1900%, indicating an explosion in the use of AI technology to facilitate scams. These AI vendors offer technology that helps scammers impersonate others or generate realistic content that tricks victims. Through 2024, Chainalysis also tracked nearly US$95million in crypto payments to data vendors on the marketplace. These vendors sell stolen data such as personally identifiable information (PII) that bad actors can exploit for illicit purposes, often with information on 'quick kill' targets i.e. potential victims who are most susceptible to being scammed. 'With easy access to comprehensive victim databases, and AI-powered tools, scammers are better equipped than ever. It's time to move past the outdated notion of scammers as unsophisticated opportunists and recognise fraud as the thriving, highly organised ecosystem it is today. Effectively disrupting and dismantling it will require a coordinated effort from regulators, law enforcement, and the private sector,' added Koven. 'Both fraud detection and compliance rely on granular, real-time data. Efforts to combat scams must focus on both prevention and enforcement, requiring stronger investigative resources and greater enablement of government agencies and local authorities. As scams continue to evolve, investigators need access to deeper intelligence, faster insights, and specialized expertise to detect and disrupt these emerging threats,' Koven concluded. 0 0
