AI-Powered Crypto Scams Surge 456% with Deepfakes and Fake Credentials, Experts Warn

Crypto scammers are becoming increasingly sophisticated, leveraging AI-generated voices, deepfake videos, and counterfeit credentials to deceive victims and steal cryptocurrency. Global crypto scams soared 456% between May 2024 and April 2025, according to Ari Redbord of blockchain intelligence firm TRM Labs. After testifying before Congress, Redbord revealed that these scams are alarmingly effective because the technology feels "incredibly real and familiar" to victims.

“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,” Redbord explained.

The threat is especially pronounced in major urban centers such as 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 that the group used deepfake BitLicense certificates and moved victims to encrypted messaging apps like Telegram before draining their wallets. Even crypto industry insiders are vulnerable. Florida-based crypto firm MoonPay’s CEO Ivan Soto-Wright and CFO Mouna Ammari Siala were tricked into wiring $250,000 to a scammer impersonating Trump inauguration co-chair Steve Witkoff, according to a Department of Justice complaint. Globally, fraudsters stole over $10.7 billion in 2024 through various crypto scams, including romance scams, fake trading platforms, and "pig-butchering" schemes, where scammers build fake relationships to drain victims’ accounts. In the United States alone, nearly 150,000 crypto-related fraud complaints were filed in 2024, with losses exceeding $3.9 billion, according to the FBI. However, the actual figures are likely much higher since only about 15% of victims report these crimes, often due to shame, fear, or distrust of law enforcement, particularly among older adults and immigrant communities. One common tool for scammers is crypto ATMs, especially those located in New York delis and convenience stores. Illicit activity at these kiosks is more than twice as high as in the broader crypto market. Victims are frequently instructed to scan QR codes and deposit cash, which is instantly converted to crypto and then disappears. In response to the growing crisis, U.S. lawmakers recently concluded ""Crypto Week"" by passing the first comprehensive cryptocurrency legislation. This trio of bills focuses on regulating stablecoins, trading platforms, and digital asset infrastructure. Despite regulatory progress, experts advise vigilance.

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

FAQ:

What tactics do scammers use in AI-powered crypto scams?

Scammers use AI-generated voices, deepfake videos, and counterfeit credentials to appear legitimate and deceive victims.

Which areas are most affected by AI-powered crypto scams?

Major urban centers like New York, Miami, and Los Angeles are particularly targeted.

How can victims protect themselves from crypto scams?

Be vigilant of unsolicited investment advice, verify platforms and identities, and report suspicious activity to authorities.

What role do AI agents play in these scams?

AI agents facilitate scams by automating processes that seem real to victims, like voice replication and messages impersonation.

Crypto Market's Take

At Crypto Market, we prioritize the security and compliance of our users against these evolving scams. Our AI-powered trading bots and comprehensive compliance protocols ensure that your trading experiences are both innovative and secure. We emphasize the importance of staying informed and vigilant and offer the necessary tools and information through our news and market analysis to empower you with knowledge and preventive measures against fraud.

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