Surge in Cryptocurrency Scams in 2024: How to Protect Yourself from Fraud

The cryptocurrency market has experienced a surge in scams in 2024, with experts estimating losses at a staggering minimum of $9.9 billion—potentially rising to as much as $12.4 billion. This alarming increase in fraudulent activities can be attributed to a combination of sophisticated "pig butchering" scams and the growing use of generative artificial intelligence (GenAI) tools by cybercriminals. As the crypto space becomes more attractive for investors, it also becomes a prime target for scammers looking to exploit unsuspecting victims.

But what happens as cryptocurrency continues to move toward mainstream adoption? Governments and businesses around the world are increasingly integrating digital currencies into everyday transactions. Large financial institutions are exploring blockchain-based solutions, and some countries are even launching their own central bank digital currencies. This shift means that digital assets are becoming more accessible—but also that fraudsters are adapting at an alarming rate.

If we compare this to the Wild West era of banking, it’s like the days when people carried gold in their pockets before secure vaults and banking laws were put in place. Just as highway robbers preyed on travelers in the past, today’s cybercriminals are ambushing investors in the digital world, using sophisticated psychological manipulation and high-tech deception.

A New Age of Digital Deception

According to a recent report by Reuters, the rise in scams is partly fueled by the increasing prevalence of "pig butchering" schemes. These scams typically involve fraudsters engaging in prolonged communication with victims, luring them with promises of high returns on investments. Once the victim is sufficiently invested emotionally and financially, the fraudster disappears with the funds.

With the help of generative AI, scammers are now able to craft highly convincing narratives and deepfake identities, making it even more challenging for investors to spot fraudulent schemes before it's too late.

Imagine walking into what looks like a luxurious bank, where the tellers are friendly, the office is pristine, and everything appears legitimate. You deposit your money, receive a receipt, and even watch your account balance grow on a screen. But the moment you try to withdraw your funds, the doors are locked, the office is gone, and the people you trusted have vanished. That’s exactly how these scams work—except they take place in digital spaces where everything can be fabricated, from fake investment dashboards to AI-generated financial advisors.

BitConnect

Earlier last year, the international cryptocurrency investment platform BitConnect—which had promised impressive returns—was revealed to be a sophisticated scam. Victims had been drawn into believing they were investing in legitimate assets, only to later discover that their funds had been siphoned off by fraudsters operating behind the scenes. These scammers utilised advanced techniques, including deepfake videos and fabricated identities, to gain trust and appear credible, leaving investors unable to differentiate the scam from a legitimate opportunity until it was too late.

Even the Smallest Scams Can Be Dangerous

Not all cryptocurrency scams are elaborate multi-million-dollar frauds. Some are as simple as phishing emails pretending to be from a well-known exchange, offering a "security update" that tricks you into entering your login details. Others might involve fake giveaways on social media, where scammers pose as influencers or companies promising to "double your crypto" if you send them a small amount first.

Even small scams matter because they add up. A person might only lose $50 or $100 in a minor scam, but if a fraudster tricks 10,000 people, that’s a multimillion-dollar operation. Worse yet, small scams often serve as a gateway—once criminals have your trust or personal details, they target you for bigger frauds down the line. What seems like a minor mistake could eventually cost you everything.

How to Spot Cryptocurrency Scammers

Recognising scams before they happen is your best defense. Here are some red flags to watch out for:

• Too-Good-to-Be-True Promises – If an investment opportunity guarantees high returns with no risk, it's almost certainly a scam. Legitimate investments always carry some risk.
• Urgency and Pressure – Scammers often push you to act quickly, claiming that an opportunity is limited or that you must send money immediately. This tactic is meant to prevent you from thinking critically or doing research.
• Fake Identities and Deepfake Profiles – Be wary of online profiles that look too perfect. Scammers use AI-generated photos, stolen social media content, and deepfake videos to appear legitimate.
• Requests for Upfront Payments – If someone asks you to send money first—whether for "processing fees," "taxes," or to "unlock" an investment—it's likely a scam.
• Strange Payment Methods – Scammers often ask for payments in cryptocurrency, prepaid gift cards, or wire transfers because these transactions are difficult to reverse.
• Unverified Websites and Apps – Fake investment platforms often mimic real ones but have slight differences in URLs, spelling errors, or missing security certificates. Always verify before entering sensitive information.
• Lack of Transparency – A real investment firm will have a clear business model, team information, and a physical presence. If you can’t find details about who runs a platform, that's a major warning sign.

Why Due Diligence Matters in the Age of Cryptocurrency Scams

In an industry known for its volatility and lack of regulation, conducting thorough due diligence is the most effective way to avoid falling victim to scams. Unfortunately, many investors overlook this critical step, focusing more on potential profits than on verifying the legitimacy of investment opportunities.

The question is—what if you could detect these scams before they happened? What if you had a safeguard that could identify red flags, no matter how well-disguised they were? What if there was a way to ensure that you weren’t about to hand over your money to a ghost?

How Futurum Risk Can Help

This is where Futurum Risk steps in. We specialise in providing comprehensive due diligence and fraud detection services to help individuals and businesses avoid falling victim to cryptocurrency scams.

• Fraud Detection and Investigation: Whether it’s a cryptocurrency exchange or an individual offering investment opportunities, Futurum Risk’s detailed investigations uncover red flags early. Using behavioral cues, background checks, and asset tracing, we ensure that every party involved is legitimate before any funds are exchanged.
• Background Checks and Risk Assessment: Our thorough background checks give you peace of mind that you’re dealing with trustworthy entities. Our risk assessment strategies help identify hidden risks that could lead to fraud or financial loss.
• Asset Tracing and Recovery: If you’ve already been targeted by a scam, Futurum Risk can assist in tracing and recovering stolen assets. With advanced tools and expertise, we track the digital trail and help bring perpetrators to justice.

The digital economy is evolving rapidly, and so are the tactics used by scammers. It’s no longer just about being cautious—it’s about being proactive. With scams becoming increasingly complex, it’s essential to conduct thorough checks and investigations to protect your financial interests.?

Futurum is in the early stages of developing a global scam database, and in the meantime, we encourage you to contribute to existing technologies by adding any incidents you encounter. Don’t wait for the unexpected to happen—take action now and protect yourself from potential risks. Contact us to find out more!