AI-Driven Crypto Scams Surge 456%: Experts Warn No One Is Safe

Crypto scammers are growing bolder and more sophisticated, now using AI-generated voices, deepfake videos, and fake credentials to deceive victims. Global crypto scams soared 456% between May 2024 and April 2025, according to Ari Redbord of blockchain intelligence firm TRM Labs. Redbord testified before Congress, revealing how scammers exploit AI technology to mimic familiar voices and identities, making their schemes highly effective.

“These scams are highly effective, as the technology feels incredibly real and familiar to the victim,” Redbord said. “We’ve seen cases where scammers use AI to replicate the voice of a loved one, tricking the victim into transferring money under the guise of an urgent request.”

The threat is particularly acute in densely populated cities like New York, Miami, and Los Angeles. In June 2025, New York officials froze $300,000 in stolen cryptocurrency and seized over 100 scam websites linked to a Vietnam-based ring targeting Russian-speaking Brooklyn residents with fake Facebook investment ads. Meta shut down more than 700 Facebook accounts tied to this scam. Investigators uncovered the use of deepfake BitLicense certificates and encrypted messaging apps like Telegram to move victims before draining their wallets. Even experienced crypto professionals are vulnerable. Florida-based crypto firm MoonPay’s CEO and CFO were tricked into wiring $250,000 to a scammer impersonating a Trump inauguration insider, according to a Department of Justice complaint. Globally, crypto fraudsters stole over $10.7 billion in 2024 through various cons, including romance scams, fake trading platforms, and “pig-butchering” schemes, where scammers build fake relationships before draining victims’ accounts. In the United States, nearly 150,000 crypto-related fraud complaints were filed in 2024, with losses exceeding $3.9 billion, according to the FBI. However, the true number is likely much higher as only about 15% of victims report these crimes due to shame, fear, or distrust in law enforcement, especially among older adults and immigrant communities. One common tool for scammers is crypto ATMs, especially those located inside New York delis and convenience stores. These kiosks see illicit use at more than twice the rate of the broader crypto market. Victims are often instructed to scan a QR code and deposit cash, which is instantly converted to cryptocurrency and quickly disappears. In response to the growing crisis, Washington has begun regulating the crypto space. House lawmakers recently concluded "Crypto Week" by passing the first comprehensive cryptocurrency legislation, focusing on stablecoins, trading platforms, and digital asset infrastructure. Despite new laws, experts advise vigilance:

“If something feels too good to be true — especially unsolicited investment advice — it almost always is,” Redbord said. “Verify the platform. Confirm identities. And when in doubt, report it — whether to IC3, Chainabuse, or your local authorities.”

FAQ

What are AI-driven crypto scams?

AI-driven crypto scams use advanced technologies such as AI-generated voices and deepfake videos to create realistic interactions that trick victims into transferring money or sharing sensitive information.

How do scammers use AI in these scams?

Scammers leverage AI to replicate voices or create false identities, making scams appear more authentic and increasing their success rate.

Where are these scams most prevalent?

Scams are particularly common in large cities like New York, Miami, and Los Angeles due to their dense populations and tech-savvy residents.

What should one do if they encounter a suspected scam?

If you suspect a scam, verify the identities and platforms involved, report the incident to authorities such as IC3 or Chainabuse, and seek advice before transferring any funds.

Crypto Market's Take

AI-driven scams have become a pressing issue within the crypto community, highlighting the critical need for enhanced security measures and consumer education. At Crypto Market, we offer advanced AI tools and resources to help users navigate these complex challenges, providing real-time alerts and insights into potential scams. Our news hub also offers up-to-date reports on market movements and fraudulent activities, supporting users to make informed decisions.

AI-fueled crypto scams are booming, up 456% -- and no one is safe,...