According to CoinDesk, on April 27, the FBI's Internet Crime Complaint Center (IC3) released its annual report revealing the state of internet crime in the U.S. in 2024, highlighting several crime data points that warrant our attention and consideration.
The report states: In 2024, the IC3 received a total of 859,532 complaints regarding internet crimes, resulting in a record loss of $16.6 billion, a 33% increase from 2023.
In 2024, internet fraud accounted for the majority of online crimes, making up 83% of the total, resulting in losses exceeding $13.7 billion.
In 2024, losses from cryptocurrency fraud accounted for $9.3 billion of the losses from online fraud in the U.S., a 66% increase from 2023.
In 2024, the elderly aged 60 and above became the primary victims of online crimes in the U.S., suffering losses exceeding $4.8 billion, a 46% increase from 2023. Among these, losses from cryptocurrency scams exceeded $2.8 billion, and losses from cryptocurrency investment scams exceeded $1.6 billion.
From the above report, it is evident that the elderly have become a major victim group in scams involving virtual currencies and other online fraud. This is also true in our country, where data from the Ministry of Public Security shows that in just the first half of 2024, losses due to new types of fraud exceeded 20 billion yuan nationally, with the fraud rate among people aged over 60 increasing by 45% year-on-year. Especially in the case of new virtual currency scams, the elderly have suffered significant losses.
I. Why do the elderly become a major victim group for virtual currency scams?
01-Insufficient Cognitive Ability
As people age, their cognitive abilities gradually decline, including memory, judgment, and reaction speed. It becomes difficult for them to understand and delve into new technologies such as blockchain and virtual currencies, making them susceptible to deception and prone to making erroneous judgments.
02-Limited Information Channels
Many elderly people, due to retirement or health reasons, have reduced contact with the outside world, narrowing their social circles and limiting their sources of information. They know little about blockchain and virtual currencies and cannot timely access the latest knowledge on cryptocurrency fraud prevention and scam cases, leading to a lack of vigilance when faced with related scams.
03-Being Lured by Cheap Offers and Seeking High Returns
Elderly individuals who have experienced hard lives generally possess frugality and thriftiness. Scammers often exploit this mindset, luring the elderly into traps through free gifts and low prices. Additionally, their desire for 'quick wealth' leads them to overlook investment risks.
04-Being Easily Deceived by Others or Worshiping Authority
They are easily deceived by others, especially when it comes to virtual currency investment projects recommended by friends or endorsed by celebrities, causing them to lower their guard. They also lack the ability to discern false advertisements or platforms for virtual currencies.
05-Communication Barriers
Some elderly individuals may lack the care and companionship of family members, eagerly seeking communication with others. This psychological need is exploited by scammers, making them more susceptible to fraud. Additionally, some elderly people are reluctant to communicate with their children or fear being ridiculed, leading them to make investment decisions alone.
06-Pensions Being Targeted
Some elderly people have worked hard their entire lives and saved a considerable pension, making them targets for inducements into virtual currency investments.
II. What are the prevalent virtual currency scams targeting the elderly?
Among the elderly, several types of virtual currency scams are particularly rampant:
①Virtual Currency Mining
"One mobile phone, easily mine, earn a fortune daily!" Does this slogan make you excited? However, many elderly individuals not only feel excited but have also invested their pensions into 'mining' with real money, and some have even taken out loans of hundreds of thousands to mine, hoping to become wealthy one day. Speaking of mining, we must mention 'Pi Coin.' Scammers, under the guise of 'blockchain' and 'future trends,' exploit the elderly's unfamiliarity with new technologies and desire for wealth, gradually leading them into traps. In some communities, elderly individuals gather together to learn about Pi Coin, unaware that they are walking into the abyss of a pyramid scheme. Even when reminded by those around them, they firmly believe in it, sometimes even bringing others into the scheme, fantasizing about getting rich together. But years have passed, and Pi Coin still cannot be traded or converted into cash; the so-called high returns have turned into illusions.
②Air Coin Investment
The operational model of these air coins is highly misleading. Project teams hype up extremely high returns, promising investors several times or even tens of times their investment in a short period. They also claim to have top blockchain technology teams with strong backing resources, falsely presenting themselves as 'central bank digital currencies' or 'national pension projects,' fabricating official documents or policy papers, and promising that the value of air coins will only rise and never fall, continuously tempting the elderly to participate. During the promotion, the project teams encourage the elderly to recruit downlines and involve their acquaintances. After investing, the elderly find that they cannot withdraw their accounts, ultimately falling victim to fraud.
③Virtual Currency Romance Scams
You read that right, the elderly are also a major target for romance scams. They are more susceptible to falling into the emotional traps of 'romance scams' due to feelings of loneliness and isolation. Scammers often use common romance scam tactics such as caring inquiries, false identities, and developing romantic relationships to gradually ensnare the elderly until they suffer financial losses. For example, Ms. Zhao, 50, from Hangzhou, lost 280,000 yuan by investing in virtual currency following an online acquaintance who claimed to be a 'military officer'; 56-year-old Aunt Zhou was lured into virtual currency investment by an online boyfriend, losing 500,000 yuan...
High returns are always accompanied by high risks; there is no such thing as a free lunch. Our elderly must remain vigilant when facing such investment temptations, and they should consult family and friends before investing, avoiding blind investments. We have also summarized some common tactics used in virtual currency fraud that everyone can refer to and save.
