Revenue from romance scams—also known as “pig butchering”—grew 40% last year and accounted for more than a third of all crypto-related scams, according to a report by Chainalysis.
Details: Confirmed losses to crypto scams were $9.9 billion for the year, but that figure is likely to go up as more come to light, according to the report. High-yield investment scams accounted for more than half of the crypto scams for the year.
Crypto ATMs: Scams involving crypto ATMs or kiosks—where users buy and sell cryptocurrency—continue to grow, totaling $65 million for just the first half of 2024. IC3 reported $189 million in losses to activity tied to crypto ATMs in 2023, while FinCEN said 43% of crypto-related suspicious activity reports since 2020 have referenced crypto ATMs.
ICBA View: In a statement for a congressional hearing on crypto-based romance confidence scams last fall, ICBA said the persistent growth of such scams emphasizes the urgent need for policymakers to prioritize national security, counter illicit finance uses of cryptocurrency, and improve information sharing with community banks.
Resources: ICBA blog posts spotlight the growth of these scams and the need for a policy response.
