Pig Butchering Crypto Scams Hit Record $3.3B in 2024

Cryptocurrency fraud has reached new heights in 2024, with pig butchering scams leading the charge. According to Chainalysis’s latest crypto crime report, these sophisticated schemes grew by nearly 40% compared to 2023, now accounting for 33.2% of all crypto scam revenue.

Pig butchering scams, which combine elements of romance and investment fraud, have proven particularly effective because scammers spend months building trust with their targets before convincing them to invest in fake crypto opportunities.

How AI Is Making Scams More Dangerous

The rise of artificial intelligence has given scammers powerful new tools. In 2024, vendors selling AI software for scams saw their revenue grow by an astounding 1,900%.

These AI tools help criminals create convincing fake personas and generate realistic content that makes their investment schemes appear legitimate.

On platforms like Huione Guarantee, scammers can now buy complete packages of AI tools for as little as $200 in cryptocurrency. These services help them create deepfake videos, clone voices, and generate convincing messages to target potential victims.

Growing Global Reach of Pig Butchering Operations

While Southeast Asia remains the primary hub for pig butchering operations, these scams have spread worldwide. Recent cases show:

• Nigerian authorities arrested 88 people running investment scams targeting Europeans and Americans
• Namibian officials discovered forced labor camps where youth were made to run scam operations
• Peruvian police rescued 43 Malaysian citizens who were trafficked to run fraud schemes

The crypto scammers have also evolved their tactics of pilfering unsuspecting victims. Instead of solely relying on long-term romance schemes, they now use quick-turnaround job scams that promise work-from-home opportunities. These faster schemes typically yield smaller amounts but allow scammers to target more victims.

Law enforcement agencies worldwide are responding with stricter regulations. Several U.S. states have implemented daily transaction limits on crypto ATMs, which scammers often use to collect payments. California and Vermont now restrict transactions to $1,000 per day, while New Jersey is considering a complete ban on crypto ATMs.

The FBI’s Internet Crime Complaint Center reports that people over 60 are particularly vulnerable, with more than 2,000 elderly victims reporting crypto ATM-related scams in 2023 alone. To combat this growing threat, authorities recommend:

• Never investing with people met through dating apps or social media
• Being extremely suspicious of any job offer that requires cryptocurrency payments
• Checking official government warnings about cryptocurrency investment schemes
• Reporting suspected scams immediately to increase chances of recovering funds

As these scams continue to evolve and become more sophisticated, staying informed about their latest tactics remains crucial for protecting potential victims.