AI-driven crypto scams set to surge in 2025 as fraud tactics evolve
Crypto scams are preparing for what could be their most successful year yet in 2025, with AI and scam-as-a-service operations making it easier than ever for fraudsters to deceive their victims.
According to blockchain analytics corporation Chainalysis, generative AI is driving fraud by making it less expensive, more scalable, and harder to detect.
In its Crypto Scam Revenue 2024 report, the company painted a concerning picture of how fraudsters are harnessing AI to push their schemes to new levels.
“GenAI is amplifying scams, the leading threat to financial institutions, by enabling high-fidelity, low-cost, and highly scalable fraud that exploits human vulnerabilities,” said Elad Fouks, Chainalysis’ head of fraud products.
He explained that AI-powered tools can create fake identities and synthetic content, allowing scammers to impersonate real users and bypass identity verification systems.
Scam revenues soaring
Crypto scam revenue hit around $9.9 billion in 2024, with “pig butchering” scams – a type of investment fraud that builds trust over time – leading the pack.
But that figure is expected to climb even higher, possibly topping $12 billion, as more fraudulent addresses come to light, Chainalysis noted.
Behind this surge in scam sophistication is a shadowy support network that allows fraudsters to operate at scale.
The report highlighted Huione Guarantee, a peer-to-peer (P2P) marketplace that provides legitimate services as well as tools and infrastructure used by scam networks.
From 2021 to 2024, revenues from Huione’s scam-related service providers skyrocketed, growing at an exponential compound annual growth rate, according to Chainalysis.
One particularly eye-catching statistic: revenue from AI service vendors surged by 1,900%, indicating a surge in AI-powered scam tools.
AI making fraud harder to spot
What distinguishes AI-driven scams is how realistic and convincing they’ve become.
Fake websites, investment platforms, and social media profiles can now be generated quickly and cheaply, making it more difficult for victims to tell what is real and what is not.
“GenAI enables the generation of realistic fake content, including websites and listings, to power investment scams, purchase scams, and more, making these attacks more convincing and harder to detect,” Fouks explained.
Even verified crypto accounts aren’t safe.
Chainalysis’ new fraud detection system, acquired last month for a reported $150 million, found that 85% of scams involved fully verified accounts, showing how fraudsters are increasingly able to bypass traditional identity checks – a problem only worsened by AI-generated identities.
The rising cost of AI-powered fraud
The impact of generative AI on fraud extends beyond crypto.
According to Deloitte’s Center for Financial Services, AI-powered scams and deepfakes could cost the US economy $40 billion by 2027.
Governments are taking notice.
In December 2023, the US Federal Bureau of Investigation (FBI) warned about scammers using AI to target cryptocurrency investors, highlighting the growing threat.
The trend isn’t slowing down
The picture is clear: crypto scams are not only becoming more sophisticated, but also more common.
Chainalysis reported that scam activity has grown by an average of 24% per year since 2020, and the company anticipates this trend to continue in 2025, particularly as AI technologies become more accessible to bad actors.
In a separate January report, Chainalysis estimated that illicit crypto transactions might have totalled up to $51 billion in 2024, despite the fact that the share of illegal activity compared to overall crypto usage has dropped to its lowest level in three years.
(Photo by Unsplash)
See also: Scammers drained $494 million in cryptocurrency wallet heists in 2024
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