Crypto and Investment Scam Statistics for 2024

More than 80,000 investment scams have been reported through the first three quarters of 2024, costing consumers $3.9 billion. That puts this year on pace with 2023, during which a record 111,000 investment scams were reported with losses totaling $4.8 billion.

Crypto scams are also on pace to match a record 2023. Through the three quarters of 2024, scammers have collected $1 billion in cryptocurrency, making it the most lucrative payment method behind only bank transfers.

What is an investment scam?

Investment scams aim to get individuals or businesses to provide money -- often cryptocurrency -- for an investment that will allegedly generate large returns. 

There are many types of investment scams, but they generally lure victims with promises of quick and large profits, only for victims to put up funds that are never seen again.

In this article, we use the terms "fraud" and "scam" interchangeably, because that's how the FTC reports its data.

Investment scam losses

Americans lost $3.9 billion to investment fraud and scams in the first three quarters of 2024

Through the first three quarters of 2024, Americans have lost $3.9 billion in investment fraud and scams through 83,144 reported cases. Among those cases, 78% involved a financial loss.

The median loss for investment scam victims in the first three quarters of 2024 was $9,170. The median investment scam loss in 2023 was $8,000.

Investment fraud has steadily increased across reported cases, median loss, and total losses over the past four years.

Investment scam statistics by age

Investment fraud reports and losses by age

Americans aged 30 to 39 reported the most investment scams through the first three quarters of 2024: 6,977. That cost them $203.8 million, and the median amount lost was $4,000.

Americans between 30 and 70 are much more likely to fall victim to investment scams than are younger or older Americans.

The median amount lost to investment scams rises significantly with age. The median loss for Americans younger than 19 hit by investment scams is $600. That rises to $6,778 for those 40 to 49 and $20,000 for victims over 80.

While median losses from investment scams rise with age, total losses peak in the 50-to-59-year-old group. They lost $346 million in the first three quarters of 2024. Those 80 and older lost just $32 million despite having the largest median loss.

Crypto scam statistics

Cryptocurrency is the top payment method for investment scams and fraud

Crypto is the top payment method by far for investment scams. Victims of 15,584 investment scams paid scammers $558 million in cryptocurrency through the first three quarters of 2024. That’s a slight decline from the same period in 2023.

Investment scams accounted for 46% of all scams involving cryptocurrency, and 55% of the cryptocurrency scammers received in the first three quarters of 2024 was from an investment scam, according to FTC data. That’s far more than any other category of scam.

Scammers try to use crypto to receive funds from victims because there are no reliable ways for victims to get their money back once it’s sent in the form of cryptocurrency. Investment scams have a natural tie to crypto, making it no surprise that it’s the most common and lucrative way to extract cash from victims.

Americans lost $1 billion to crypto fraud in the first three quarters of 2024

Looking beyond investment scams, Americans lost $1 billion to scammers via cryptocurrency in the first three quarters of 2024. A quarter of all cash lost to scammers over that period was a result of a crypto transfer, making it the second-most-popular payment method behind only bank transfers.

Crypto as a preferred payment method for scammers came to prominence in 2021. In 2020, scammers extracted $130 million from victims via crypto. That grew to $746 million in 2021, $1.4 billion in 2022, and $1.4 billion in 2023. 2024 is on pace to be slightly lower.

Investment scams and social media

Scammers are increasingly relying on social media to reach targets

Forty-three percent of investment scam victims in the first three quarters of 2024 were contacted via social media, far more than any other type of contact method. Another 16% were contacted through a website or app.

The number of investment scam victims that reported social media to be their initial method of contact has grown from 4,889 in 2020 to 26,160 in 2023. In 2020, just 29% of investment scams started via social media.

How to spot a scam

How to spot a scam and how to report it 

With investment scams on the rise, it’s important that the public knows how to spot and report a scam. 

Investment scams come in many forms and are constantly changing to keep up with trends and current events. Cryptocurrency scams in particular are increasingly popular, and more scammers are using social media, websites, and apps to target the public. 

To avoid getting scammed, follow a few rules of thumb recommended by the FTC:

• Be wary of an opportunity that seems too good to be true. If it is, it’s usually a scam. 
• Do your research. Don't invest in something you don’t understand or haven’t heard of. If you’re approached about a company or cryptocurrency that’s new to you, the FTC recommends that you search for it online along with “scam,” “review,” or “complaint.”
• Avoid investment opportunities that require you to pay by cryptocurrency, wire transfer, or gift card. Doing so will make it extremely difficult to get your money back. 

If you’ve been targeted by a scam, make sure you report it at reportfraud.ftc.gov, even if you haven’t lost any money. If you've lost money as a result of an investment scam, reporting it is the best way to have a chance at recouping your losses.

Conclusion

Unfortunately, investment and cryptocurrency scams aren’t going anywhere. In fact, data over the last few years makes clear that those scams are becoming more prevalent and costly and that scammers are constantly evolving their tactics.

Remaining vigilant, doing your own research before investing, and avoiding overtures that require you to pay by cryptocurrency, wire, or gift card are surefire ways to avoid losses and remain on a path to financial success.