FBI Data Shows 66% Increase in Crypto Fraud with Elderly Hardest Hit

TLDR

• Americans lost $9.3 billion to crypto fraud in 2024, a 66% increase from 2023
• People over 60 lost $2.8 billion despite making up only 17% of the population
• Crypto ATM fraud complaints jumped 99% in one year, with seniors losing over $107 million
• The average loss for victims over 60 was $83,000, four times the overall average
• FBI’s “Operation Level Up” saved an estimated $285 million since January 2024

In a concerning trend highlighted by the FBI’s Internet Crime Complaint Center (IC3) in its 2024 annual report released Wednesday, elderly Americans have become the primary targets of cryptocurrency fraud, with losses reaching record highs across the country.

The report shows that crypto-related fraud reached an all-time high of $9.3 billion in 2024, representing a 66% increase from the previous year’s $5.6 billion. While the numbers are troubling across all age groups, older Americans have been hit hardest.

Americans aged 60 and older lost nearly $2.8 billion to crypto scams, accounting for 30% of total losses despite this age group making up only about 17% of the U.S. population. This demographic filed 33,369 crypto-related complaints to the FBI last year.

Staggering Losses for Seniors

The average loss per senior victim was $83,000, which is more than four times the overall average loss of $19,372 for other online crimes. This huge disparity highlights how scammers are targeting older Americans who may have larger savings but less familiarity with cryptocurrency technology.

“The criminals Americans face today may look different than in years past, but they still want the same thing: to harm Americans for their own benefit,” stated B. Chad Yarbrough, operations director at the FBI’s criminal and cyber division, in the report.

The FBI notes that these figures likely underrepresent the true scale of crypto fraud. Many victims never report these incidents to law enforcement, creating an incomplete picture of the actual scope of the problem.

Rise in Crypto ATM Scams

One of the most alarming trends in the report is the rapid increase in crypto ATM and kiosk fraud cases, which nearly doubled from 2023 to 2024. These convenient but often poorly understood exchange points have become major targets for scammers.

The FBI reported that 2,674 individuals over 60 contacted them about losses totaling $107 million specifically through crypto ATM schemes. In these scams, criminals typically direct victims to withdraw money from financial accounts, including retirement or investment funds.

A separate FBI warning explains that scammers “request payment from the victim and may direct the victim to withdraw money from the victim’s financial accounts, such as investment or retirement accounts.”

Investment Fraud Leads Losses

Investment fraud remains the largest category of crypto scams affecting seniors, accounting for $1.6 billion in losses for this age group. These schemes often promise high returns with little or no risk, taking advantage of victims’ desire to grow their retirement savings.

The FBI has responded to the growing threat with initiatives like Operation Level Up, which identifies and notifies potential victims of crypto investment fraud. This program has saved an estimated $285 million since its launch in January 2024.

The IC3 received more than 140,000 complaints referencing cryptocurrency in 2024. The bureau reports that “last year saw a new record for losses reported to IC3, totaling a staggering $16.6 billion.”

Fraud made up the bulk of reported losses in 2024, while ransomware remained the most common threat to critical infrastructure, with complaints rising 9% from 2023. Those over 60 suffered the most losses and submitted the most complaints among all age groups.

Other common scams included “sextortion” schemes, where fraudsters manipulate photos and videos to create explicit content and then demand cryptocurrency payments to prevent distribution.

Blockchain analytics firm Chainalysis warns that 2025 could see even more scams, as generative AI makes fraud “more scalable and affordable for bad actors to conduct.” The firm estimated that there was roughly $41 billion in illicit crypto volume globally in 2024.

Some of the most high-profile crypto crimes in 2024 included the $1.4 billion stolen from the Bybit exchange in March and North Korean hackers taking more than $1.3 billion throughout the year.