AI-Powered Cybercrime Drives Record US$16.6 Billion in Losses, FBI Reports
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The US Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3) released its 2024 Internet Crime Report, documenting a staggering US$16.6 billion in losses from cybercrime, a 33% increase from US$12.5 billion in 2023. The report, based on 859,532 complaints, highlights the growing sophistication of cybercriminals, with artificial intelligence playing a central role in amplifying the scale and impact of attacks. Phishing, data extortion, and personal data breaches topped the list of reported crimes, while elderly victims, particularly those aged 60 and older, faced disproportionate financial harm, filing 147,127 complaints and suffering US$4.8 billion in losses.
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AI as a Tool for Cybercriminals
Cybercriminals are leveraging AI to craft highly convincing phishing emails, automate large-scale data extortion schemes, and exploit personal data breaches with unprecedented efficiency. For instance, AI-driven tools can generate tailored phishing messages that mimic legitimate communications, making it harder for individuals to detect fraud. The IC3 report notes that phishing and spoofing led with 193,407 complaints, reflecting how AI enhances the scalability of these attacks. Additionally, AI-powered bots are used in extortion schemes, such as sextortion, which saw 54,936 complaints and US$33.5 million in losses, a 59% increase from 2023. The ability of AI to analyze stolen data rapidly has also fuelled personal data breaches, with 64,882 complaints reported.
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Impact on Elderly Victims
The elderly, particularly those over 60, were the most affected demographic, filing 147,127 complaints and reporting nearly US$4.8 billion in losses, a 43% increase from 2023. AI-driven scams, such as tech support fraud and romance scams, disproportionately targeted this group, exploiting their trust and limited familiarity with digital platforms. For example, tech support scams alone caused US$1.46 billion in losses, with seniors often receiving AI-generated calls or pop-up messages posing as legitimate tech companies. The report highlights that 7,500 elderly victims lost over US$100,000 each, with an average loss of US$83,000, underscoring the devastating financial toll.
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Top Cybercrimes and Financial Losses
The IC3 report identifies phishing/spoofing, extortion, and personal data breaches as the top three cybercrimes by complaint volume. Phishing led with 193,407 complaints, followed by extortion with 86,415, and personal data breaches with 64,882. However, investment fraud caused the highest financial damage, totalling US$6.57 billion, largely due to AI-enhanced cryptocurrency scams like “pig butchering”, where fraudsters build fake relationships to lure victims into fraudulent platforms. Business email compromise (BEC) scams followed with US$2.77 billion in losses, often involving AI-crafted emails impersonating executives. Cryptocurrency-related fraud, a key area where AI is used to obscure transactions, accounted for US$9.3 billion in losses, a 66% rise from 2023.
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Regional and Sectoral Trends
California, Texas, and Florida reported the highest number of complaints and losses, reflecting their large populations and digital connectivity. California led with 96,265 complaints and US$2.54 billion in losses, followed by Texas with 62,347 complaints and US$1.35 billion, and Florida with 52,191 complaints and US$1.07 billion. Critical infrastructure sectors, including healthcare and energy, faced significant threats, with 4,878 complaints related to ransomware and data breaches. Ransomware, a persistent menace, saw a 9% increase in complaints, with AI aiding attackers in targeting vulnerabilities. The healthcare sector was particularly vulnerable due to the high value of personal data, which AI tools can quickly exploit for billing fraud or extortion.
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FBI’s Response and AI-Driven Defenses
The FBI has intensified efforts to combat AI-powered cybercrime, leveraging its own AI tools to analyze complaint data and identify trends. In 2024, the IC3’s Recovery Asset Team froze US$561 million in fraudulent funds, achieving a 66% success rate through the Financial Fraud Kill Chain process. Operation Level Up, launched in 2024, identified over 4,300 victims of crypto fraud, preventing US$286 million in losses. The FBI also collaborated internationally, conducting 11 joint operations with India’s Central Bureau of Investigation, resulting in over 215 arrests targeting call center scams. The agency emphasizes the importance of public reporting to the IC3 website to enhance its AI-driven analytics and improve response strategies.
Public Guidance and Prevention
The FBI urges individuals and businesses to remain vigilant against AI-enhanced scams. Key recommendations include verifying unsolicited communications, avoiding sharing personal information, and regularly checking IC3 alerts for scam trends. For those affected, the FBI advises immediate reporting to financial institutions, the IC3 website, local FBI field offices, and law enforcement. The report stresses that timely and detailed complaints are critical for the FBI’s AI systems to detect patterns and prevent further losses. Since its inception in 2000, the IC3 has received over nine million complaints, underscoring its role as a vital tool in combating cybercrime.
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Source: FBI
