Crypto scams surge to $17 billion in 2025 as AI-powered fraud tactics dominate the landscape

Report estimates $17 billion worth of bitcoin was stolen in 2025 alone -- massive haul arises from impersonation tactics and the use of AI for scams

AI-powered scams extracted 4.5 times more revenue compared to traditional con jobs 2025 represented the largest increase in revenue generated by crypto scams to date with an estimated $17 billion stolen that year alone, Chainalysis reports. The rise of AI-generated deepfakes, phishing, AI-assisted pig butchering, impersonation (including governmental impersonation) and more have all contributed to 2025 being the biggest year for crypto scammers worldwide. Chainanalysis recorded a 253% YoY increase in average payments from crypto scammers. An average payment in 2024 was worth $782, but in 2025, an average payment is worth $2,764. In the firm's current analysis for 2025, cryptocurrency scams have received at least $14 billion recorded on blockchains, representing a 34% increase compared to 2024 which saw thefts total $9.9 billion for the lifetime of Chainalysis' tracking. However, due to timing issues between reporting periods, it is expected that the 2025 figure will exceed the aforementioned $17 billion figure. Impersonation scams are at the heart of the aforementioned 2025 figures. Chainalysis recorded a whopping 1400% growth in impersonation scams in 2025 compared to 2024, with average security payments increasing by over 600% (for each scam, the average amount of stolen crypto increased substantially). A big part of these impersonation scams is impersonation of governmental agencies. Chainanalysis cites E-ZPass scams as one example of this class of fraud, where scammers used fake texts from America's electronic toll collection systems to scam victims out of $1 billion over three years. AI-powered scams were significantly more effective in 2025, extracting 4.5 times more money compared to conventional social engineering tactics. Chainalysis revealed that average scams with "on-chain links to AI vendors" extracted $3.2 million per op compared to $719,000 without on-chain links. It also recorded higher daily revenue of $4,838 for AI generated scams and $518 for scams without AI. Transaction volume also increased by 9x with the assistance of AI. Chainalysis reporting matches other reports of increased fraudulent activity in the cryptocurrency space. A few days ago the FBI warned Americans that crypto ATM scams are on the rise and "not slowing down" after reporting that American's lost $333 million to ATM Bitcoin fraud in 2025 alone. 2025 also saw the largest confiscation of crypto in history when the DoJ seized $15 billion worth of Bitcoin from a Cambodian scammer who ran a pig butchering con using forced labor. This problem is only expected to get worse, governments are unequipped to tackle the difficulties of tracking crypto, which in and of itself is designed to be anymous to anyone looking at crypto transactions from the outside. Reports like this serve as a good reminder to always be on the lookout for scams and double-check that the last banking or money request notification you got on your phone is legitimate.

AI and Impersonation Crypto Scams Experience Record Growth in 2025

Crypto security experts said a good way to counter scams that rely on deceiving victims is to be skeptical of every unsolicited message and interaction. Scammers and fraudsters increasingly used impersonation scams to steal crypto from unsuspecting users last year, with a 1400% year-over-year spike in cases, according to Chainalysis. Impersonation scams involve fraudsters posing as a trusted person or organization in an effort to trick victims into handing over crypto, passwords, account access and other sensitive information. In a crypto crime report on Tuesday, Chainalysis said fraudsters have been incorporating multiple tactics into their operations. "For example, many pig butchering and investment scams incorporate elements of impersonation, social engineering, and even technical- or wallet-focused scams," they said. The average amount stolen through impersonation scams also increased by over 600%, which Chainalysis called a "concerning trend." One of the more prominent examples of impersonation scams in 2025 involved scammers masquerading as crypto exchange Coinbase to steal nearly $16 million from victims. The Brooklyn District Attorney's office indicted a man in December, alleging he was behind the fraud. The accused has pleaded not guilty to the range of offences, including grand larceny, money laundering and scheme to defraud. A trial date is yet to be set. Artificial intelligence has made scams more effective and is part of the "industrialization of fraud," said Chainalysis, with scammers using complex tools from dedicated vendors to dupe more victims. Chainalysis found that scams using AI were 4.5 times more profitable, while operations were more efficient with higher daily revenue and increased transaction volume. "These metrics suggest both higher operational efficiency and potentially broader victim reach. The increased transaction volume indicates that AI is enabling scammers to reach and manage more victims simultaneously, a trend consistent with the industrialization of fraud we've been tracking," they said. "In contrast, the increased scam volume suggests that AI is likewise making scams more persuasive." The increase in scams has also prompted an increase in law enforcement action in 2025; however, Chainalysis urged authorities to focus more on preventing harm through enhanced detection tools and greater adoption of real-time fraud and mule detection systems in 2026. At the same time, more resources should be allocated for enhanced cross-border law enforcement coordination and support for institutions and enforcement in low-capacity jurisdictions, they said. Related: Global sanctions linked to record flows into illicit crypto addresses "There are no silver bullets to tackling such entrenched, industrial-scale scamming activity and to be effective, a multi-pronged response is required." "As we move into 2026, we expect further convergence of scam methodologies as scammers adopt multiple tactics and technologies simultaneously," Chainalysis added. A group of crypto security experts told Cointelegraph last year that some of the best ways to counter social engineering scams is to reduce human trust points through actions like automating defenses. It was also recommended to never disclose sensitive data like passwords or key phrases, because a legitimate company would never ask for them, to assume every interaction and unsolicited message could be fraudulent and to always verify authenticity.

AI helped drive increase in crypto scam losses to $17bn in 2025

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. In 2025, cryptocurrency scams received at least $14 billion on-chain but the figure could exceed $17 billion, says Chainalysis, as it identifies more illicit wallet addresses in the coming months. That would represent a significant increase on the $12 billion lost in 2024. The average scam payment has soared from $782 in 2024 to $2764 in 2025. Overall scam inflows have also surged, particularly through impersonation tactics that saw a staggering 1400% year-over-year growth. While high-yield investment programmes and pig butchering remain dominant categories by volume, Chainalysis says it is seeing increasing convergence across scam types as fraudsters leverage AI, sophisticated SMS phishing services, and complex money laundering networks to target victims more effectively than ever before. AI-enabled scams were 4.5 times more profitable than traditional scams last year: on average, scams with on-chain links to AI vendors extract $3.2 million per operation compared to $719,000 for those without an on-chain link. And, the technology is set to become dominant, predicts the report: "We are moving toward a future in which virtually all scams will incorporate AI into their operations to some degree." While losses are increasing and scammers are becoming more sophisticated, Chainalysis notes that last year also saw record seizures from law enforcement. In November, the UK's Metropolitan Police secured convictions in a landmark money laundering case that led to the world's largest confirmed crypto seizure, recovering over 61,000 Bitcoin -- currently valued at around £5 billion. Meanwhile, a $15 billion seizure linked to the Prince Group criminal organisation showed improved transnational capability to combat crypto fraud.

Chainalysis Says AI Tools Helped Drive Crypto Scam Losses to $14 Billion in 2025 | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The 2024 figure was revised up from the $9.9 billion Chainalysis initially reported, and the 2025 figure could exceed $17 billion as the company identifies more illicit wallet addresses in the coming months, Chainalysis said in a Tuesday blog post. Last year's increase was driven by a surge in impersonation tactics and the use of artificial intelligence (AI) tools, according to the post. Impersonation scams, in which fraudsters pose as legitimate organizations or authority figures, saw year-over-year growth of 1,400%, the post said. Example seen in 2025 included scammers impersonating representatives of the E-ZPass electronic road toll collection system and the Coinbase cryptocurrency exchange. As of Tuesday, the home page of E-ZPass Group includes a banner saying that "there has been a major increase in fraudulent text & email messages being sent that appear to be from various toll agencies across the country including the E-ZPass Group stating there is money owed." AI-enabled scams were 4.5 times more profitable than traditional ones, according to the Chainalysis blog post. This form of fraud includes the use of tools such as face-swap software, deepfake technology and large language models. AI tools enable fraudsters to manage more victims at the same time and to make their scams more persuasive, the post said. "While high-yield investment programs (HYIP) and pig butchering remain dominant categories by volume, we're seeing increasing convergence across scam types as fraudsters leverage AI, sophisticated SMS phishing services, and complex money laundering networks to target victims more effectively than ever before," Chainalysis said in the post. The FBI's Internet Crime Complaint Center (IC3) said in April that reported cryptocurrency fraud losses reached $9.3 billion in 2024, a 66% increase over the previous year. These losses stemmed from investment scams, extortion, sextortion and fraudulent activity involving cryptocurrency ATMs and kiosks. Revolut said Tuesday that it added a call identification feature to its finance app to help combat impersonation scams. The company said the threat posed by this form of fraud has grown as scammers use AI-generated deepfake voices and increasingly sophisticated social engineering tactics.