Crypto Scams Are Rapidly Evolving Beyond Pig Butchering: Report

Crypto scams are getting smarter, faster, more dynamic—and more painful for victims.

That’s according to a new report by blockchain analysis firm Chainalysis, which noted that  “many smaller, simultaneous campaigns” by criminal groups are helping them dodge law enforcement. 

In its mid-year “2024 Crypto Crime” update, published Thursday, the firm said that both on- and off-chain data showed that scams were getting briefer—but more lucrative. 

“The most distinctive feature of this year’s scam landscape involves the rapid evolution of scammers’ on-chain footprint: the crypto wallets and addresses used to take scam victim payments, and the off-chain tools they use to manipulate their victims, like domains and social media accounts,” the report read.

Chainalysis said that “more targeted” scams instead of elaborate crypto ponzi schemes were becoming more common. 

The firm added that many of the digital wallets identified in scams—particularly “pig-butchering” ones—were new wallets, indicating a surge in new cons. 

“Pig butchering” is a type of long-term scam where a criminal builds a relationship with the victim—typically a romantic one—to gain their trust and eventually con them into handing over funds. Chainalysis said the practice remains the “largest revenue-generating scam.”

The report also noted “a marked decline in the average lifespan of scams,” from 271 days in 2020 to 42 days so far this year.

“This activity reveals how scammers are adapting on- and off-chain to conduct more devastating scams of shorter duration,” it added. 

And the criminals are making big bucks, the firm said. The report said one Myanmar-based pig-butchering scam compound, first observed on-chain in 2022, has this year made over $101 million from its crimes.