Crypto scammers shift to short-term schemes in 2024 for quick gains

A recent report by Chainalysis has revealed that crypto scammers have shifted their tactics in 2024, focusing on short-term, high-reward scams targeting smaller entities and individuals. 

This change has reduced the average lifespan of these scams by over 50% since 2023, as criminals seek to minimise the chances of getting caught. 

The Chainalysis 2024 Crypto Crime Mid-Year Update highlights that the landscape of crypto scams has evolved significantly this year. 

The report shows that scams involving digital assets have continued to grow, with billions in illicit inflows recorded so far. 

Scammers are increasingly moving towards "more devastating scams of shorter duration," aiming to generate quick profits while avoiding detection. 

To achieve this, scammers have developed multiple smaller campaigns running simultaneously, which helps sustain larger organised scam syndicates. 

A new trend noted in the report is the increased inflow of funds to newly created wallets in 2024, with 43% of this year’s scam revenue going to wallets established within the same year. 

In comparison, 29.9% of scam inflows in 2022 went to wallets created that year. 

The average lifespan of crypto scams has decreased significantly. 

In 2020, scams lasted an average of 271 days. 

However, in 2024, the average scam lasts only 42 days, representing an 84% decline since 2020 and a 58% drop since 2023. 

This shift indicates a move away from elaborate Ponzi schemes to more targeted scams like "pig butchering" and "address poisoning." 

One of the major scam operations in 2024 involves KK Park, a well-known pig butchering group in Myanmar, which has consolidated over $100 million through various schemes. 

The report also mentions that scammers are now purchasing seasoned social media accounts to appear more legitimate, with prices ranging from $5 to $20 per account. 

These profiles are used to deceive victims, reflecting an upgrade in off-chain tactics by scam networks.