Criminal syndicates have amassed a record-breaking $9.9 billion from online fraud in 2024, according to an analysis by Chainalysis. Nearly half of this sum was generated through fraudulent investment schemes, while another third stemmed from the notorious scam known as “pig butchering.”
This method has become so widespread that experts now warn of a global crisis and a national security threat. Revenues from such operations surged by 40%, while the number of transactions flowing into criminal accounts skyrocketed by 210%. At the same time, the average payment amount dropped by 55%, indicating that fraudsters now prioritize high-volume scams over prolonged persuasion of individual victims.
For the uninitiated, pig butchering is a particularly insidious form of fraud, named after the practice of fattening a pig before slaughter. Cybercriminals spend months “nurturing” their victims through online romantic relationships, gradually building trust before methodically draining them of their financial resources. Scammers meticulously analyze potential targets’ social media profiles, craft alluring fake identities, and establish deep emotional connections. Once trust is fully secured, the victim is coaxed into making investments in fraudulent ventures or pressured into providing financial assistance under the guise of an urgent personal crisis.
Initially, Southeast Asia was the epicenter of such operations. According to UN reports, over 220,000 individuals from 40 countries are forcibly detained in scam compounds across Cambodia and Myanmar, where they are coerced into performing the dirtiest work—messaging potential victims, making phone calls, and recruiting new targets into the criminal funnel. These operators themselves are held against their will, stripped of their documents and communication devices.
However, over the past two years, this crisis has spread far beyond Asia. In 2024, clandestine scam centers were uncovered in Namibia, Nigeria, and Peru. The International Justice Mission (IJM) warns that while the scale of operations in these regions remains smaller than in Asia, their emergence signals the rapid global expansion of cybercriminal networks.
For instance, Nigeria’s anti-corruption agency recently dismantled a major fraud syndicate, arresting 48 Chinese nationals and 40 Filipinos. Nigerian operatives scouted for victims across Europe and North America, while foreign operators—fluent in English and well-versed in Western culture—persuaded them to invest in fictitious cryptocurrency projects.
Meanwhile, an Interpol-led international raid in Namibia rescued 88 young individuals forced into scam operations. In Peru, authorities liberated 43 Malaysians, victims of human trafficking who were coerced into working at a local scam call center.
A new and alarming trend involves fraudulent remote job offers. The IJM first identified this tactic in mid-2023 when scammers began using paid advertisements on social media, masquerading as reputable organizations. Since then, criminals have escalated their tactics, deploying mass SMS campaigns with vague job descriptions, often mimicking well-known employment websites. These fraudulent portals appear so authentic that most victims fail to recognize the deception.
Scammers entice victims with simple remote tasks and promises of lucrative payouts. Initially, earnings appear to accumulate in the victim’s online account, reinforcing the illusion of legitimacy. However, when individuals attempt to withdraw their funds, they are informed of a mandatory “tax payment”. The fraudsters then cunningly incentivize victims to continue accumulating funds, claiming that a larger balance will result in a lower tax percentage. As a result, many delay cashing out, hoping to reduce their losses—only to be swindled out of even larger sums.
The rapid proliferation of these schemes is fueled by the industrialization of cybercrime. A key player in this ecosystem is Huione Guarantee, a company that provides technological solutions for large-scale fraud operations, including automation software, AI-driven chatbots, and scam management tools. In 2024 alone, Huione processed $376 million in cryptocurrency payments.
Moreover, since 2021, revenues from illicit AI-powered fraud services have surged by a staggering 1,900%, demonstrating the alarming sophistication and profitability of this rapidly evolving criminal enterprise.
