TL;DR
- Pig butchering scams hit an all-time high in 2024, with a 40% increase in revenue to $9.9 billion, according to Chainalysis.
- Scammers increasingly leverage AI to create realistic fake images and videos, leading to a 1900% increase in revenue for AI service vendors.
- Scam tactics have evolved to include fake work-from-home job offers, with deposits into scam wallets increasing by 210%.
According to a recent report by Chainalysis, pig butchering scams have reached an all-time high, with a 40% increase in revenue in 2024. These scams, which involve fraudsters building trust with victims before convincing them to invest in fraudulent schemes, have become increasingly sophisticated, leveraging AI to deceive victims.
AI-Driven Scams on the Rise
The report highlights that the total losses from these scams amounted to $9.9 billion in 2024. The adoption of AI has significantly contributed to the surge in pig butchering scams. Scammers are now using AI to create realistic fake images and videos, making it easier to deceive victims.
The report notes a 1900% increase in revenue for AI service vendors on platforms like Huione Guarantee, which has become a hub for scam infrastructure. This platform provides scammers with access to targeted data lists, web hosting services, social media accounts, and AI software, facilitating the execution of these scams.
Changing Tactics and Broader Impact
In addition to traditional romance scams, scammers have adapted their tactics to include fake work-from-home job offers, which yield smaller amounts per victim but generate quicker returns.
The number of deposits into pig butchering scam wallets increased by 210% in 2024, indicating a broader victim pool. Despite the increase in overall revenue and deposits, the average deposit amount fell by 55%, suggesting that scammers are targeting more victims with smaller amounts.
Global Reach and Future Outlook
Pig butchering scams, which traditionally operated from scam centers in Southeast Asia, have now spread to other regions. The report also mentions that North Korea’s Lazarus hacking group transferred over $150,000 in cryptocurrency to Huione’s payment app, highlighting the global reach of these scams.
Chainalysis predicts that the number of crypto scams will continue to rise in 2025, driven by the growth of AI and more sophisticated fraud tactics. The alarming increase in pig butchering scams underscores the need for heightened awareness and stronger measures to combat these fraudulent activities.
As scammers continue to evolve their tactics, individuals and organizations must stay vigilant and adopt robust security practices to protect themselves from falling victim to these scams.
