Nearly doubling its resources, the U.S. Secret Service is intensifying the battle against a surge in cryptocurrency-related financial crimes. This past decade alone, they’ve confiscated some $400 million in illegal cash. This joint initiative represents a direct challenge to the rise of digital financial crimes. Crypto-related scams have become the biggest driver of all internet crime losses in the United States. In 2024, Americans lost a jaw-stopping $9.3 billion to crypto fraud. That figure accounts for over half of the total $16.6 billion lost to online crime.
The increase in crypto crime should scare the daylights out of you. In just the first six months of 2025, losses attributed to hacks, scams, and exploits have already surpassed $2.47 billion. That’s almost a 3% jump from the $2.4 billion that was defrauded in total 2024. Second, this rise highlights the need for better enforcement and prevention efforts completely.
Kali Smith, who directs the Secret Service’s cryptocurrency strategy. She has been involved in training law enforcement and government officials in more than 60 countries on the best ways to detect and dismantle online financial crimes. During that time, the New York field office has become the focal point for many of their initiatives for global cryptocurrency enforcement and training efforts. Smith said that even just a few hours of training can open jurisdictions to the widespread reach of crypto-related crimes.
Jamie Lam, an investigative analyst with the Secret Service, is one of the folks on the front lines of these efforts. Lam’s team employs a combination of art and science to sniff out the fraudsters. They rigorously review domain records, deeply analyze blockchain transactions, and identify VPN blunders.
One recent example was an investigation of a young Idaho teen. She fell into a trap of extortion after sending a nude selfie to someone she met online. She added that the scammer extorted $300 twice before the teen finally contacted the police about the crime. By closely following the trail of cryptocurrency payments, investigators were able to trace an additional wallet. A short-lived VPN failure revealed the scammer’s IP address which allowed agents to follow the online breadcrumbs. Their advocacy resulted in the arrest upon arrival in England of one suspected extortionist by British police. The suspect remains in custody pending extradition.
Analysts also recently uncovered a jaw dropping $4.1 million in transactions associated with a Nigerian passport. They followed these payments all the way up to one intimidated teen who was being used as an employment scam money mule. These examples serve to remind us of the complicated, multi-jurisdictional—and often international—character of crypto-related crimes.
