Crypto Scammers Drain $2.8B from Seniors—FBI Data Exposes Brutal Trend
Grandparents, not gamblers—turns out retirees are crypto’s biggest marks. The FBI’s Internet Crime Complaint Center (IC3) just dropped a gut-punch report: Americans over 60 lost $2.8 billion to digital asset scams last year. That’s not ’rugpull’ money—that’s reverse mortgages and drained 401(k)s.
Why seniors? They’ve got savings, trust authority (fake SEC emails work wonders), and rarely double-check wallet addresses. Romance scams, fake tech support, even ’your grandson’s in jail’ schemes—all now come with crypto payment options.
Meanwhile, Wall Street’s busy launching Bitcoin ETFs—because nothing says ’financial innovation’ like profiting from both the problem and the solution.
Alarming Trend
A significant portion of these losses came from individuals aged 60 and above, who filed roughly 33,000 complaints and suffered a combined total of $2.8 billion in losses. This age group also saw the largest increase in both reported complaints and financial harm.
The IC3’s report also noted a dramatic year-over-year increase in losses – 66% higher than in 2023, when total losses amounted to $5.6 billion. Investment scams involving cryptocurrency were the primary source of these losses, but the report also highlighted other schemes such as sextortion, where criminals manipulate personal content to coerce victims into sending money, and fraud involving crypto ATMs.
Additionally, ransomware attacks, which had been a recurring issue, showed a 9% rise in 2024, thereby posing a growing threat to critical infrastructure. Overall, fraud and crypto scams were the most significant contributors to the rise in reported cybercrimes, with older individuals particularly vulnerable to these high-stakes digital fraud schemes.
On the other hand, pig butchering scams, which were once mainly targeted at older adults, are now increasingly affecting younger individuals, particularly those aged 30 to 49. A recent study by Cyvers examined 150 major crypto platforms, revealing over 200,000 scam incidents and $5.5 billion in losses in 2024.
The research focused on Ethereum-based scams and uncovered significant fraud across various platforms, including major exchanges, a crypto-friendly bank, and institutional trading platforms. The scale of impact varied, but the trend is clear: younger people are becoming the prime victims.
Operation Level Up
‘Operation Level Up’ was thus initiated with the assistance of FBI agents and the US Secret Service to address the growing issue of cryptocurrency investment fraud. Pig butchering involves fraudsters building online relationships with victims and convincing them to invest in a fraudulent cryptocurrency platform.
As a result of this operation, a total of 4,323 individuals affected by cryptocurrency investment fraud were informed of the scam. Of these victims, 76% were unaware they had fallen victim to fraud. The estimated financial savings for these victims amounted to $285.6 million. Additionally, 42 victims were referred to an FBI victim specialist for support regarding potential suicidal thoughts.
