Chainalysis study: The scam eyewash increased by 40%, and Trump and the US Immigration and Customs Enforcement are vigorously cracking down

Modern people are prone to feeling empty and lonely, and romance scams take advantage of this vulnerability by using AI-generated images and fictitious personas on investment websites to gradually ensnare victims in a virtual eyewash of love. They believe they are in a deeply meaningful relationship, but behind the phone screen may lie a vast ecosystem of fraud, constantly seeking out prey. Originating from Southeast Asian romance scams, this scheme has now expanded globally, with many middle-aged and elderly Americans being swindled out of their savings by fake online personas and AI-generated images.

The U.S. Immigration and Customs Enforcement released a press release warning American citizens that Pig Butchering, also known as Romance Scams, is spreading to the United States, and scam groups are even using young people who are themselves victims or have been kidnapped and held hostage to commit fraud.

Why can the US Immigration and Customs Enforcement crackdown on illegal immigration reduce romance fraud? The main immigration policy is excessively loose, which will lead to many ‘professional criminal’ elements entering the country and engaging in fraud in the United States.

In 2024, the cryptocurrency scam group made at least USD 9.9 billion in profits online, according to Chainalysis’s latest research. 2024 may be the most active year for scams, as AI generation and many illegal e-commerce platforms like Huione Guarantee, a P2P Marketplace, provide illegal services, allowing scam groups to surpass their previous illicit gains.

Chainalysis recently acquired Alterya, using artificial intelligence to detect and analyze fraudulent data, and collaborating with top cryptocurrency exchanges, fintech companies, and financial institutions to prevent fraud before victims are scammed.

In 2024, nearly 10 billion dollars was transferred to a fraud syndicate

In the past few years, as the ecosystem of fraud has become more professional, the complexity of cryptocurrency fraud has continued to increase. P2P marketplaces like Huione Guarantee provide a large number of illegal services for pyramid schemes, including the construction of infrastructure, integrated services for legal cover-up of illegal activities and money laundering.

High-yield investment scams and Ponzi schemes make the most profit in eyewash

In the past year, High-Yield Investment Scam (HYIS) and love eyewash scams have profited the most, accounting for 50.2% and 33.2% respectively. Although HYIS accounted for half of the scam revenue in 2024, the inflow decreased by 36.6% compared to last year, while love eyewash scams increased by nearly 40% from last year.

Pig-killing plate love eyewash forces hostages to commit fraud

Pig Butchering eyewash (Pig Butchering) focuses on individuals, scammers establish emotional relationships with victims, persuading them to invest in cryptocurrencies. Scam groups that specialize in setting traps through love mainly originate from Southeast Asia. The International Justice Mission (IJM) is a global organization that protects the poor from violence, and in 2021, it began to observe cases of forced labor related to these activities. It found a sharp increase in such criminal activities. IJM’s focus is on preventing human trafficking related to these activities by strengthening the justice system.

The romance scam originated in Southeast Asia, but its geographical distribution is expanding. In the past two years, criminal activities have begun to shift to other countries. In December 2024, the Nigerian anti-corruption agency announced the arrest of 48 Chinese and 40 Filipino nationals, who are suspected of targeting European and American citizens for investment fraud. The scam group recruited Nigerians to find victims online and then deceived them into investing in fake cryptocurrency projects. In October 2023, Malaysian authorities announced that Peruvian police had rescued 43 Malaysians who had been trafficked to Peru and forced to work in fraudulent schemes.

Cambodian company Huione Group provides AI generation services for fraud groups

A Cambodian enterprise group called Huione Group provides high technology to help fraud groups establish an ecosystem. Huione Group is known for providing legitimate services such as remittances, insurance products, and luxury travel products, but it is also famous internationally for assisting cybercrime. Since 2021, Huione Guarantee (an online forum and P2P market under Huione Group) has processed nearly 70 billion US dollars in encrypted transaction activities, especially widely used in the growing money laundering activities in Southeast Asia.

Huione Guarantee provides the necessary technology, infrastructure, and resources for fraud groups; including target data, network hosting services, social media accounts and content, as well as artificial intelligence software, etc. In addition to these services, Huione also supports a large number of money laundering operations. Fraud groups use these legitimate activities provided by Huione Guarantee to cover up illegal activities. Huione Guarantee has built a huge, constantly growing, and interconnected fraudulent ecosystem.

In 2024, Huione’s eyewash technology suppliers collectively received at least $3.759 billion in cryptocurrency. The revenue of AI service providers increased by 1900%, indicating a surge in the use of AI technology for deception. The technology provided by artificial intelligence suppliers helps fraud groups impersonate others or generate convincing content to deceive victims into investing in cryptocurrencies.

Huione data provider sells stolen data, such as personal identification information (PII), which can be used by criminals for scams.

Internet infrastructure providers offer technical services such as website hosting and mechanisms to bypass app store authentication, providing credibility for fraudulent websites and apps used to deceive victims. In addition, large-scale SMS distribution also helps scam groups expand their attack scope globally, reaching a wider range of potential victims.

Scam groups use fake social media accounts to increase trust. Generative artificial intelligence creates virtual personas for scammers, and romance scammers use AI to build relationships with victims for fraud purposes.

Chainalysis director and Alterya co-founder Elad Fouks said that Generative AI exploits human vulnerabilities to carry out highly realistic and low-cost fraud, helping create false identities that allow fraudsters to impersonate real users and bypass identity verification controls.

Alterya found that 85% of scams involve bypassing identity verification and using lists and data from websites that look real, making it difficult for victims to detect. On the Huione Guarantee mall, there are dozens of software suppliers offering AI technology to assist in scams. For just 200 dollars, they can provide ‘AI face-swapping services,’ combining perfect looks and appearance with aggressive SMS attacks, making it difficult for lonely individuals to defend themselves.

Chainalysis’s way of unwinding is to increase international cooperation to combat crime. The Trump administration has a fierce anti-illegal immigration policy, immediately deporting illegal immigrants once caught. Recently, many wanted criminals from Taiwan who fled to the United States have been caught, including drug trafficker Liu Qiaoan, and they were deported and sent back to Taiwan. When countries collaborate and share the latest criminal methods openly, it leaves no place for criminals to hide.

Taiwan has long been open to neighboring countries, including but not limited to Southeast Asia and China. Criminal groups can easily come to Taiwan under the guise of tourist visas. Perhaps it should consider Trump’s tough policy to cut off criminals from coming to Taiwan to commit crimes.

This Chainalysis study: the scam adds 40% to the love of the pig dish, and Trump and the US Immigration Office are vigorously cracking down on it first appeared in the Chain News ABMedia.