The landscape of cryptocurrency scams is constantly evolving, with recent trends indicating a significant shift in tactics and impact. While overall crypto crime saw a decline in early 2023, the emergence of sophisticated AI-powered deepfakes and a resurgence in ransomware attacks have become major concerns as of mid-2025.
Global losses from crypto scams surged to $4.6 billion in 2024, with projections indicating that the true figure could exceed $12 billion as investigations continue.[5] This increase is largely attributed to the growing sophistication of scams, particularly those leveraging artificial intelligence.
In the first half of 2023, cryptocurrency-related crime experienced a significant downturn. Inflows to known illicit entities were down 65% compared to the same period in 2022, and inflows to risky entities (like mixers and high-risk exchanges) dropped by 42%.[2] This decline was more pronounced than the general market pullback, which saw legitimate services experience only a 28% drop in inflows.[2] Scams, typically the highest-revenue form of crypto crime, saw a dramatic 77% reduction in revenue through June 2023 compared to the previous year, totaling just over $1.0 billion.[2] This was largely due to the abrupt disappearance of two major investment scams, VidiLook and Chia Tai Tianqing Pharmaceutical Financial Management, which appeared to have exit scammed, moving funds and ceasing operations.[2] VidiLook alone bilked victims out of over $120 million in a few months.[2] However, despite the overall decline, impersonation scams saw a smaller 23% decline in inflows, and the number of individual transfers to impersonation scam addresses actually increased by 49% year-over-year in 2023, indicating more victims, albeit with smaller individual losses.[2]
By 2024 and 2025, the narrative shifted significantly with the rise of AI-powered scams. A 2025 Anti-Scam Research Report, co-authored by Bitget, SlowMist, and Elliptic, highlighted that AI-generated deepfakes are playing a leading role in a new wave of sophisticated crypto scams.[5] In the first quarter of 2025 alone, at least 87 AI-driven scam rings were dismantled.[5] These groups utilize synthetic videos, fake Zoom calls, Trojan-laced job offers, and deepfake impersonations of trusted figures to deceive users.[5] For instance, deepfakes of Prince William and the UK Prime Minister have been used to promote phony cryptocurrency investment platforms on social media, spending significant amounts on ads and reaching hundreds of thousands of people across various currencies.[4] Ripple's CEO, Brad Garlinghouse, has also issued warnings about a surge in XRP scams, often involving
impersonations of Ripple executives and fake giveaways, exploiting the token's price surges.[3] [6] These scams frequently leverage hacked YouTube accounts to promote fraudulent investment schemes, with scammers offering XRP giveaways in exchange for initial deposits.[6]
Beyond deepfakes, other sophisticated tactics are being employed. "Pig butchering" scams, where scammers build trust over time before draining victims' funds, saw a 210% jump in deposits linked to them in 2024.[5] While the average amount lost per person in these scams dropped by 55%, it suggests scammers are targeting larger groups with smaller individual amounts.[5] Social media platforms like Facebook, X (formerly Twitter), Telegram, and WhatsApp are key channels for these scams, often using AI-generated content and emotional manipulation tactics like FOMO (Fear Of Missing Out) and romance scams.[5] The North American Securities Administrators Association (NASAA) predicts that nearly 40% of regulators expect AI to become the main tool for crypto fraud, with deepfakes expected to rise sharply.[5]
Ransomware, unlike other crypto crimes, has seen a resurgence. In 2023, ransomware attackers were on pace for their second-biggest year ever, extorting at least $449.1 million through June, potentially reaching $898.6 million by year-end, trailing only 2021's record of $939.9 million.[2] This increase is partly due to a comeback in "big game hunting," where large, deep-pocketed organizations are targeted, alongside a rise in successful small attacks.[2] Cybersecurity experts have noted a significant increase in initial demands, sometimes ranging into the tens and hundreds of millions of USD, and more extreme extortion techniques like employee harassment.[2]
To protect against these evolving threats, vigilance is crucial. Users are advised to verify links, avoid suspicious downloads, and stay informed.[5] For companies, stronger defenses, regular security training, and fostering a "verify before you trust" mindset are essential.[5] Financial experts recommend seeking professional advice from licensed advisors before making any significant investments, especially in cryptocurrencies, which are high-risk and often unregulated.[7] Warnings include being wary of unsolicited investment offers, promises of high returns with little risk, and demands for payments in cryptocurrency from legitimate entities.[7]
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