Chainalysis’ report shows that AI-driven impersonation and deepfake technologies have transformed crypto scams into a highly scalable criminal enterprise, pushing global losses to an unprecedented $17 billion in 2025. (Source: Image by RR)

Artificial Intelligence Is Making Crypto Scams Faster, Cheaper & Far More Convincing

Cryptocurrency scams reached a record $17 billion in losses in 2025, driven largely by the growing use of artificial intelligence and impersonation tactics, according to a new report from blockchain analytics firm Chainalysis. The surge, according to an article in finance.yahoo.com, reflects not only an increase in scam volume, but a sharp rise in effectiveness, as criminals leverage AI tools to deceive victims more convincingly and at greater scale than ever before.

One striking indicator is the jump in the average scam payment, which rose to $2,764, up from $782 in 2024—a 253% increase. Chainalysis found that scams linked on-chain to AI vendors generated an average of $3.2 million per operation, more than four times higher than scams without AI links. These schemes frequently rely on deepfakes, face-swapping software and large language models, often sourced from Chinese vendors and distributed via Telegram.

Impersonation scams have become especially potent. Chainalysis reports that scams using deepfaked images of government officials surged more than 1,400% in 2025, with criminals posing as representatives from government agencies, banks and crypto platforms. One large-scale phishing campaign targeted U.S. residents with fake E-ZPass toll alerts, sending up to 330,000 texts in a single day, despite relying on infrastructure that likely cost scammers less than $500.

Long-running fraud schemes such as “pig-butchering” scams continue to generate some of the highest losses, as criminals build trust over time before extracting large sums. These operations are increasingly moving funds through decentralized finance tools, avoiding centralized exchanges to reduce traceability. Chainalysis also highlighted the human toll of these scams, which are often tied to organized crime networks in Southeast Asia that rely on human trafficking and forced labor. The findings underscore how AI has transformed crypto fraud into a highly scalable, global criminal industry with both financial and human consequences.

read more at finance.yahoo.com