AI Deepfakes Drive 40% of High-Value Crypto Scams, Costing $4.6 Billion in 2024

AI Deepfakes Drove 40% of High-Value Crypto Fraud Last Year: Report - Decrypt

Social engineering schemes ranked as second-most dangerous crypto fraud method, followed by modern Ponzi schemes. AI-generated deepfake impersonations of government officials, billionaires, and celebrities accounted for 40% of "high-value frauds" in 2024, a Bitget report revealed. That same year, $4.6 billion in crypto was lost to scams, a 24% increase from the previous year, Bitget's Anti-Scam Report 2025 -- co-authored with Slowmist and Elliptic -- found. "Crypto scams have entered a new era -- driven by AI deepfakes, social engineering, and deceptive project fronts," the report said. "Scams now exploit trust and psychology as much as technology. From wallet takeovers to multimillion-dollar frauds, the attacks are becoming more personalized, more believable, and harder to detect." A "frequent" deepfake that appeared, according to the report, featured Tesla CEO Elon Musk pitching fraudulent investment or giveaway schemes. Other uses for deepfakes include bypassing know-your-customer verification, creating virtual identities to lead investment scams, and conducting fake Zoom phishing attacks. The Zoom scam sees scammers impersonate executives, experts, and journalists -- including Decrypt reporters -- to get a victim on a fraudulent video call. This may see the attacker offer the victim a job or ask to interview them for a non-existent article. During the fake Zoom call, attackers can gain control of the victim's computer, steal data, and potentially access private crypto keys. Bitget reports that in some cases, the attackers are using deepfake tools to generate video and audio content to trick the victim into joining the call. Many of these deepfake scams aren't new; the Elon Musk scam first went viral in 2022. However, with the rapid acceleration of artificial intelligence, deepfakes have started to look real. So much so that President Trump signed the bipartisan Take It Down Act last month that protected the victims of deepfake porn -- although, deepfakes in general still aren't prohibited. In May, actor Jamie Lee Curtis called out Meta CEO Mark Zuckerberg after discovering a fake AI-generated ad of herself promoting a product without her consent. "The biggest threat to crypto today isn't volatility -- it's deception," Bitget CEO Gracy Chen said, in a release. "AI has made scams faster, cheaper, and harder to detect." Outside of deepfakes, social engineering and modern Ponzi schemes ranked second and third as the report's "most dangerous" scams. By definition, social engineering scams exploit the psychology of victims in a method that is "low-tech, yet highly effective," the report says. One of the most common examples is the pig butcher scam, also called a romance scam, which sees the attacker develop a relationship with the victim solely to scam them. As for the ol' classic Ponzi scheme -- named after the early 20th century scammer Charles Ponzi -- the report claims that the scam has gone through a "digital evolution." "These scams typically disguise themselves in new concepts like DeFi, NFTs, and GameFi, packaged as project fundraising, liquidity mining, or platform token staking," the report states. "Fundamentally, they remain classic Ponzi schemes where 'new money fills old holes.' Once the cash flow breaks or the operators cash out and exit, the entire system collapses quickly." The report notes a rise in Ponzi schemes that adopt "game-like user interfaces" and use deepfakes to forge endorsements from celebrities to boost credibility in the scheme. AI has revolutionized the scamming industry, resulting in a markedly different landscape from just a few years ago. "Five years ago, avoiding scams meant 'don't click suspicious links,'" the report finished. "Today, it's 'don't trust your own eyes.'"

87 deepfake scam rings taken down across Asian in Q1 2025: Bitget Report

The Bitget report highlights the severity of deepfake scams, urging both individuals and organizations to adopt more stringent preventive measures. The rise of AI technology has also fueled a surge in AI-enabled fraud. In Q1 2025 alone, 87 deepfake-driven scam rings were dismantled. This alarming statistic, revealed in the 2025 Anti-Scam Month Research Report co-authored by Bitget, SlowMist, and Elliptic, underscores the growing danger of AI-driven scams in the crypto space. The report also reveals a 24% year-on-year increase in global crypto scam losses, reaching a total of $4.6 billion in 2024. Nearly 40% of high-value fraud cases involved deepfake technologies, with scammers increasingly using sophisticated impersonations of public figures, founders, and platform executives to deceive users. Related: How AI and deepfakes are fueling new cryptocurrency scams Gracy, CEO of Bitget, told Cointelegraph:" The speed at which scammers can now generate synthetic videos, coupled with the viral nature of social media, gives deepfakes a unique advantage in both reach and believability." Defending against AI-driven scams goes beyond technology -- it requires a fundamental change in mindset. In an age where synthetic media such as deepfakes can convincingly imitate real people and events. Trust must be carefully earned through transparency, constant vigilance, and rigorous verification at every stage. The report details the anatomy of modern crypto scams, pointing to three dominant categories: AI-generated deepfake impersonations, social engineering schemes, and Ponzi-style frauds disguised as DeFi or GameFi projects. Deepfakes are particularly insidious. AI can simulate text, voice messages, facial expressions, and even actions. For example, fake video endorsements of investment platforms from public figures such as Singapore's Prime Minister and Elon Musk are tactics used to exploit public trust via Telegram, X, and other social media platforms. AI can even simulate real-time reactions, making these scams increasingly difficult to distinguish from reality. Sandeep Narwal, co-founder of the blockchain platform Polygon, raised the alarm in a May 13 post on X, revealing that bad actors had been impersonating him via Zoom. He mentioned that several people had contacted him on Telegram, asking if he was on a Zoom call with them and whether he was requesting them to install a script. Related: AI scammers are now impersonating US government bigwigs, says FBI SlowMist CEO also issued a warning about Zoom deepfakes, urging people to pay close attention to the domain names of Zoom links to avoid falling victim to such scams. As AI-powered scams grow more advanced, users and platforms need new strategies to stay safe. deepfake videos, fake job tests, and phishing links are making it harder than ever to spot fraud. For institutions, regular security training and strong technical defenses are essential. Businesses are advised to run phishing simulations, protect email systems, and monitor code for leaks. Building a security-first culture -- where employees verify before they trust -- is the best way to stop scams before they start. Gracy offers everyday users a straightforward approach: "Verify, isolate, and slow down." She further said: "Always verify information through official websites or trusted social media accounts -- never rely on links shared in Telegram chats or Twitter comments." She also stressed the importance of isolating risky actions by using separate wallets when exploring new platforms.

Crypto Scams Cost Investors $4.6 Billion in 2024: Bitget

The use of AI is making crypto scammers more sophisticated Crypto holders have been identified to be vigilant Crypto firms are also forming teams to combat crypto crimes Crypto scammers are leveraging AI-driven social engineering tactics to deceive unsuspecting users and swindle them out of their funds. Crypto exchange Bitget highlighted the rising crypto scams in its 2025 Anti-Scam Research Report, compiled with inputs from blockchain security firms SlowMist and Elliptic. The report claimed that an estimated $4.6 billion (roughly Rs. 39,364 crore) was lost to international crypto scams in the year of 2024. Along with social engineering scams, the use of deepfake technologies have also caught momentum among scammers. Gracy Chen, the CEO at Bitget said that AI has made scams faster, cheaper, and even harder to detect. In social engineering scams, for instance, scammers use AI-generated fake staking offers and phishing bots to steal from unsuspecting victims. The report mentioned cases where deepfake videos of public personalities like Elon Musk and Singapore Prime Minister Lee Hsien Loong were floated on the Internet promoting fraudulent schemes. "The biggest threat to crypto today isn't volatility -- it's deception," Chen said in the report. "We believe fighting back requires both technological rigor and ecosystem-wide collaboration." The report noted that phishing rings and fake staking dApps are increasingly common tactics used by cybercriminals to target victims. Scammers are also turning to deepfake impersonations and Ponzi schemes disguised as DeFi, NFT, or GameFi projects. The report has alerted the crypto community to be vigilant against engaging with unknown or suspicious individuals and services. It said that fraudsters may try to influence their targets using strategies including deception and manipulation. Fake miner rebates and airdrop traps are also being deployed by scammers to entrap potential victims. "Be skeptical of unsolicited contact -- whether via LinkedIn, Telegram, or email. Never run unfamiliar code or install files from strangers, especially under the guise of job tests or app demos," the report suggested crypto holders. "Trust isn't just earned in crypto -- it must be verified." With the ongoing advancements in the overall blockchain and AI sectors, the report advised individuals to verify crypto-related information on social media. It said that frequent crypto users must bookmark official sites, use browser plugins like Scam Sniffer, and avoid connecting wallets to unknown links. "If you suspect your device is infected, immediately disconnect from the internet, transfer funds to safe wallets, remove malicious programs, and if necessary, reinstall the operating system to minimize losses," the report added. Bitget's report resonates with the one released by Chainalysis in February 2025, which stated that generative artificial intelligence fueled last year's record losses from crypto scam. In fact, Chainalysis posted a higher estimate of $9.9 billion (roughly Rs. 85,996 crore) in its report. Owing to the rise in crypto-related cybercrime incidents, web3 firms are coming together to lend technical assistance to the community. Tron, Tether, and TRM Labs have created a financial crimes unit called T3 to recover funds lost in crypto thefts. Meanwhile, the UK and India are also taking initiatives to provide core technical knowledge to law enforcement officers to help cut down on crypto related crimes.

Nearly 40% of All Crypto Scams Involve Deepfake Technology : Bitget Report

A new report highlights that most of the rampant crypto scams happen due to Deepfakes with the social engineering and Ponzi scheme attacks evolving. Crypto Scams:- The web3 industry and Bitcoin are rapidly evolving and developing but so are the crypto scams. Be it the Argentine President Javier Millie associated $LIBRA meme coin rug pull or the $CUBA Solana Pump-and-dump, the crypto scams continue to rock the industry. Just two days prior only, Javier Millie has received clean chit in the $250 million $LIBRA scam. Amidst this, a new report by Bitget in collaboration with SlowMist and Elliptic highlights the evolution of scams between 2023-2025. The crypto scams are dominantly implemented in three ways - Deepfake Impersonation or AI related scams, Social engineering schemes and Ponzi-like frauds. AI-Related Crypto Scams Dominate Leading to $4.6 Billion Losses With no doubt, the adoption of Artificial Intelligence in dApps and web3 industry is increasing at a rapid pace. The use cases of AI Agents are being expanded by emerging crypto projects - such as Donut, TrueNorth - working at the integration of AI and crypto. Howeve, AI is proving both as a boon and bane for the cypto world. The report highlights AI-associated Deepfakes among the most popular tactics used by scammers these days. The use of AI synthesis tools such as Synthesia, ElevenLabs, and HeyGen manipulates the users in believing the fabricated audio or video as real. The various scenarios it creates includes: 1. Deepfake Celebrity Videos promoting Investment such as Singapore PM Lee Hsein deepfaked to promote "crypto Investment platforms" 2. Creation of forged facial videos to bypass KYC Verification on exchanges and wallets platforms 3. The formation of fake identity groups on Telegram and other social channels to implement Crypto scams 4. Penetration of Zoom meetings using Deepfake or trojan-infecfted meeting software Evolution of Social Engineering and Ponzi Schemes Apart from the AI-related Deepfake scams, the other type of prevalent crypto scams are the social engineering tactics and Ponzi scheme attacks. The Bitget report further reveals that despite being low-tech, these attacks manipulate users' behaviours using "psychological vulnerbilities." Such attacks include AI Arbitrage bot scams, Trojan-laced job offers, fake interview coding assigmenefs and phishing links communicated by Telegram or X DMs. The AI Arbitrage bot scams include the ChatGPT generated bots fool the users by claiming the option of autonomous trading which ultimately results in fund loss. Ponzi Schemes Are not Vanished Yet In crypto's early years, before DeFi, NFTs, and sophisticated hacking tools, classic Ponzi and pyramid schemes were by far the most prevalent scams. A Ponzi scheme is a fraudulent investment operation that lures investors by promising high returns with little or no risk. Instead of generating real profits, the operator pays "returns" to earlier investors using the capital from newer investors. However, when inflows slow or investors attempt to cash out en masse, the scheme collapses, leaving most participants with heavy losses. Though their frequency has decreased owing to the development of more sophisticated crypto scam tools, the report argues that traditional Ponzi and pyramid schemes haven't vanished in crypto - they've simply gone digital. They are now cloaking themselves in buzzwords like DeFi, NFTs, and GameFi while still relying on "new money to pay old investors." Tools that can flag Crypto Scams With the various types of scams plaguing the industry, the report shares the certain tools that can be used to track and flag such funds seized during crypto scams. These include: 1. Transaction monitoring tools tracking incoming and outgoing source of transactions 2. Investigative tools such as cross-chain bridging used by scammers for moving funds across different blockchains 3. Address screening using behaviour-based detection Conclusion Requires Vigil To conclude, crypto scams have evolved from the simple, "send-me-your-money" Ponzi and pyramid schemes of Bitcoin's early days into highly sophisticated operations. Today, they blend cutting-edge blockchain tooling, social engineering, and even AI-generated deepfakes to exploit users. Thus, with the evolving crypto scam techniques, there is a need for constant vigil by users and web3 platforms.

Crypto Scams With AI Deepfakes Cost Victims $4.6B in 2024, Marking a 24% Increase

Crypto scams have entered a new era, driven by hyper-realistic AI deepfakes and increasingly sophisticated social engineering tactics. According to a new research report co-authored by Bitget, scams involving AI and social manipulation cost crypto users more than $4.6 billion in 2024, a 24% year-on-year increase. AI Deepfake Crypto Scams on the Rise On June 10, crypto exchange Bitget released its Anti-Scam Month Research Report, highlighting how fraudsters are evolving rapidly with the weaponization of generative AI. These deepfakes are being used to promote fake investment schemes, fraudulent tokens, or to bypass identity verification on major exchanges. "In just Q1 2025, authorities dismantled 87 deepfake-related scam operations across Asia," the report states. In one of the largest operations, Hong Kong police arrested 31 suspects for impersonating crypto executives using synthetic media, defrauding victims of $34 million. Old Frauds, Better Disguise The report warns that traditional fraud tactics are now being hidden behind more convincing facades. Classic Ponzi and pyramid schemes are being rebranded as DeFi projects, NFT investments, or GameFi platforms, often featuring gamified dashboards, AI-generated team photos, and forged KYC and audit credentials. According to the report, nearly 40% of high-value frauds in 2024 involved deepfake technology. "These aren't just minor annoyances, they're deceptive tools that can mimic trusted voices and create incredibly convincing falsehoods," Bitget CEO Gracy Chen told CCN. A notable example from 2023 involved JPEX, a so-called crypto exchange that conducted a billion-dollar fraud in Hong Kong under the pretense of high-yield staking. The scheme was promoted through physical advertisements and celebrity endorsements. Last year, blockchain investigator ZachXBT uncovered a scam network responsible for a series of rotating rug pulls, including Leaper Finance and Zebra Lending, which exploited multiple Layer 1 blockchains. Compared with traditional Ponzi schemes, today's digital scams display several new characteristics, according to Bitget, including tronger technical disguises, "Social fission" propagation, which uses messaging apps and livestreams to encourage users to recruit others, and Gamified interfaces and identity forgery. "This can understandably shake people's confidence in the space, which is precisely why we're so focused on addressing it head-on," Chen said. The Bitget CEO added that despite the worrying statistics, she remained optimistic for the future. "While the threat is real, we have the resources and tools to fight back with minimal efforts," Chen told CCN. "We're seeing a lot of work being done on deepfake detection, and the industry is collaborating more than ever to share intelligence and spread awareness," she added. Traditional Crypto Scams Remain Despite the emergence of deepfake-enabled fraud, traditional crypto scams are also on the rise. One of the fastest-growing threats involves the global expansion of Bitcoin ATMs, which remain a focal point of concern for regulators. According to data from CoinATMRadar , the U.S. hosts a staggering 30,433 Bitcoin ATMs -- by far the highest number globally. Canada follows with 3,610, and Australia ranks third with 1,824. While it's difficult to determine which country experiences the most Bitcoin ATM scams, the U.S., Canada, and Australia are all reporting high levels of fraud. In the U.S., the Federal Trade Commission (FTC) reported that Americans lost over $114 million to Bitcoin ATM scams in 2023, marking a tenfold increase since 2020. Meanwhile, between January 2024 and January 2025, Australians lost more than A$3.1 million to cryptocurrency ATM fraud, according to the Australian Federal Police.