Chainalysis: Romance and address poisoning scams on the rise
As average lifespan of scams falls
Cryptocurrency-related scams are surging in 2024, with billions of dollars flowing into fraudulent schemes, according to a new study by Chainalysis. The study by the New York, US-headquartered blockchain data company reveals that these scams are evolving, significantly shifting toward more targeted attacks.
Chainalysis’ report highlights a dramatic increase in scam activity this year, with 43% of total scam inflows going to newly activated wallets. This marks a notable rise from 29.9% in 2022, indicating a surge in new scams.
Additionally, the research shows a significant decrease in the average lifespan of scams—from 271 days in 2020 to just 42 days in 2024. This trend suggests a move away from long-term Ponzi schemes to shorter, more targeted scams such as romance fraud and address poisonings.
Eric Jardine, Cybercrime Research Lead at Chainalysis, attributes this shift to a strategic pivot by scammers. “The decline in scam duration and the rise in targeted attacks indicate that cybercriminals are focusing on more personalised and immediate fraud schemes,” Jardine explained.
“Scammers are now leveraging interpersonal communication channels, such as social media and text messages, to deceive victims more effectively.”
85-fold increase
Romance scams have been particularly alarming. Chainalysis estimates that these scams have increased 85-fold since 2020. One prominent fraud shop received $10.5 million between 2022 and 2024, with scammers purchasing ‘seasoned’ social media profiles for $5 and $20 each.
This suggests that scammers could have acquired between 525,000 and 2.1 million social media profiles to exploit victims.
Jardine emphasises the need for vigilance. “The shift to targeted scams makes it crucial for individuals to be cautious about unexpected communications. Even seemingly innocent interactions can lead to fraudulent schemes, especially if monetary transfers are requested,” he warned.
Chainalysis underscores the importance of blockchain transparency in combating crypto-related crime. By monitoring crypto transactions and collaborating with law enforcement and cryptocurrency exchanges, the company aims to disrupt and prevent these fraudulent activities.
“We remain committed to leveraging blockchain technology to uncover and address illicit activities. Our continued partnership with law enforcement and industry stakeholders is vital in safeguarding users and preventing financial losses,” Jardine concluded.
Featured image: Crypto-currency-related scams are evolving, significantly shifting toward more targeted attacks. Credit: Mati Mango
