Record-breaking Cryptocurrency Misdeeds Surge in 2024
In the digital age, cybercrime has become a global concern, with authorities across the world reporting a surge in online fraud and cyberattacks.
The FBI's Internet Crime Complaint Center (IC3), established 25 years ago, has received a staggering total of 9 million complaints. The centre now receives more than 2,000 reports per day, a significant increase from the initial 2,000 reports per month.
One of the most lucrative forms of online fraud is investment fraud, confirmed by Europol as the leading cause of financial losses in the European Union. In 2024 alone, IC3 received nearly 150,000 reports of online crime involving cryptocurrencies, resulting in damages totalling $9.5 billion.
Europol's IOCTA Report for 2023 states that online fraud is a significant threat in the EU, generating billions in illegal profits every year. Similar trends are expected in upcoming reports from Europol, BKA, and other European authorities, setting new records for online fraud involving cryptocurrencies.
Ransomware remains a significant threat to critical infrastructure. The FBI executed a major crackdown on LockBit, one of the world's most active ransomware operations, and since 2022 has issued thousands of decryption keys, preventing $800 million in ransom payments.
In Australia, an authority established in early 2023 to combat online fraud issued an interim report stating that there were around 600,000 proven fraud cases in 2023, resulting in damages of about $2.7 billion.
The Austrian Federal Criminal Police Office reported a steadily increasing number of reported cybercrime cases since 2019, with internet fraud being the largest area of cybercrime. More than half of cybercrime offenses in Austria are fraud related.
The German Federal Criminal Police (BKA) reported a 28% increase in cybercrime cases in 2023 compared to the previous year, with a focus on hacking and ransomware. Among types of internet fraud, scams related to cryptocurrencies caused the highest financial losses compared to other types of internet fraud.
Individuals over 60 now represent the largest group of victims in various prevalent fraud schemes. Despite the vague, incomplete, and outdated data for Europe, there is considerable evidence that the trend observed in the U.S. is also occurring in Europe. Europol reports that fraudsters target millions of EU citizens every day, with damages rising.
The BKA notes a continuous decline in fraud cases, but over 50% of fraud incidents now occur online. This shift towards digital fraud is a concerning development, as the anonymity provided by the internet makes it easier for criminals to operate undetected.
As the world continues to digitise, it is crucial for authorities to stay vigilant and adapt to the evolving nature of cybercrime. Collaboration between international law enforcement agencies will be key in combating this global issue.
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