Losses to investment scams, romance fraud, and pig butchering reached $4.6 billion in the United States, a 38% increase in 2023. These scams often play out in private peer-to-peer conversations between victim and criminal, well beyond the reach of typical threat intelligence.
Netcraft has explored these scams by leveraging a first-of-its-kind AI-powered solution that communicates with criminals at scale. Responding to lure email and SMS messages, our AI-based personas continue the dialogue to uncover hidden financial and technical infrastructure. Following the money by disrupting money mule networks identified in confirmed scams in real-time could disable entire threat actor networks in one fell swoop.
The reach of these scams runs deep with criminal bank accounts, mule accounts, crypto wallets, and a connected web of malicious infrastructure used to further these scams. We have extracted thousands of criminal money mule bank accounts across 73 countries and more than 600 financial institutions. In one case, we have received 17 mule accounts from one conversation. The top four crypto wallet addresses Netcraft identified have received more than $45 million (1,000 BTC).
Equally, criminals, like the rest of us, are human too. And a long-lived but ultimately fruitless conversation with a Netcraft-controlled persona can cause frustration – as you’ll see later.
Crime pays. The hours are good, you travel a lot.
One in six of our conversations with criminals has resulted in details of at least one bank account being sent. Other conversations end with requests to buy gift cards, cryptocurrency payments, online payment providers (like PayPal), or money remittance services (like Western Union). While others fade out over time as the conversation naturally goes cold.
When we see the whole scam play out, on average, criminals send more than 32 messages despite receiving only 15 replies. Standing out in the data is …