Illegal digital activities surged to unprecedented levels in the year 2024, the peak of cryptocurrency-related crimes.
In the digital age, online fraud has emerged as a significant threat, generating billions in illegal profits annually. According to Europol's IOCTA report for 2023, online fraud is a strong threat in the EU, with investment fraud topping the list.
Europol's findings reveal that investment fraud is the most lucrative online fraud scheme in the EU, causing a staggering loss of over €5.8 billion with over 41,500 reports. This trend is not unique to the EU; in the USA, investment scams were by far the most prevalent category of online fraud, accounting for approximately half of the cases involving cryptocurrencies.
The FBI's Internet Crime Complaint Center (IC3) has received a total of 9 million complaints to date, with the frequency of reports increasing sharply. In 2024, online crime involving cryptocurrencies reached an all-time high, with nearly 150,000 reports and a total loss of $9.5 billion. This figure nearly doubled the amount from the previous year, indicating the rapid growth of cryptocurrency-related fraud.
The damage per capita in Australia from investment scams is many times higher than in the USA, suggesting that the FBI report may underestimate the true extent of the problem. An agency in Australia reported an interim assessment on online fraud in mid-2024, finding around 600,000 detected cases of fraud in 2023 with damages totaling over $2.7 billion.
In Europe, cybercrime cases have been steadily increasing since 2020, with a 28% increase in 2023. However, this increase is primarily due to hacking and ransomware rather than fraud. The BKA reports that more than 50% of fraud cases in Europe now occur on the internet.
In Austria, internet fraud is the largest area of cybercrime and is responsible for the overall increase in offenses last year. Internet fraud offenses in Austria now number over 65,000 per year. The Austrian Federal Criminal Office reports a continually decreasing clearance rate for internet fraud cases.
In Germany, the organization primarily responsible for collecting data on internet fraud, including cryptocurrency fraud scandals, is the Verbraucherzentrale (Consumer Protection Center). The Verbraucherzentrale Nordrhein-Westfalen, one of its local branches, operates a "Phishing-Radar" to gather and analyze phishing attempts, raising public awareness and alerts about fraud.
Looking ahead, early indications suggest that investment scams will continue to thrive in 2025. Future reports from Europol, BKA, and other agencies are likely to report new records in online fraud involving cryptocurrencies, similar to the FBI's report. Ransomware remains a persistent threat to critical infrastructure.
As the digital landscape continues to evolve, it is crucial for individuals and businesses to stay vigilant against online fraud. Awareness, education, and proactive measures are key to combating this growing threat.
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