Losing $17 billion in cryptocurrency scams—AI and impersonation scams are rapidly increasing

According to the latest survey by cryptocurrency analysis firm Chainalysis, by 2025, up to $17 billion worth of funds will have been lost due to cryptocurrency-related scams and fraud. Replacing traditional hacking, impersonation techniques combined with AI-driven scams are becoming mainstream, posing serious threats to the entire industry.

Rapid Evolution of Scam Techniques: Over 4x Profitability with the Rise of AI

Criminals are adopting advanced AI technologies to organize their victim-targeting methods. Chainalysis reports that AI-generated scams are achieving 4.5 times higher profitability compared to conventional scam methods. Through deepfake and automation tools, scammers can produce大量 fake information such as “support staff,” “government notifications,” and “trusted internal contacts” with high sophistication.

This technological evolution has transformed cryptocurrency scams from isolated crimes into highly organized industries. Data analysis indicates that the average scam victim loss has increased significantly, suggesting that criminals are shifting from a “hit-or-miss” strategy to targeting high-value targets.

Impersonation Scams Surge 1400%—Real Cases of Damage

The growth rate of impersonation scams is astonishing. Chainalysis reports a 1,400% increase year-over-year, making it a serious industry-wide issue rather than an isolated case.

In a case in the UK in 2025, a man fell victim to nearly $2.5 million in Bitcoin scams. This scam, described by police as a “worrying new trend,” employs social engineering techniques that cleverly exploit human psychology, such as “fear” and “panic.” Even diligent holders are deceived by its sophistication.

The scale of damage is even more concerning. According to a report from the North Wales Cyber Department, between 2020 and the end of 2023, approximately 100,000 people in the UK fell victim to investment scams, with total losses reaching £2.6 billion (about $3.5 billion). This amounts to an astonishing weekly loss of about £13 million ($17.5 million). However, these figures only account for reported scams, and actual numbers may be even higher.

Chainalysis Warns: Human Trust as a New Target

Hacking remains a persistent threat. Chainalysis data shows that approximately $2.2 billion was stolen in 2024. However, scams are more difficult to repair than vulnerable smart contracts and rely on the fundamental weakness of human trust.

Lior Aizik, co-founder and COO of crypto exchange XBO, points out that this trend is very real. “Across the entire cryptocurrency industry, impersonation scams are increasing and becoming more sophisticated. Users should never share confidential information, even if they believe they are talking to official support staff,” he comments.

Aizik himself has been targeted multiple times by impersonation scams. Scammers use his name and contact industry contacts with fake profiles, pretending to represent XBO and demanding money. “These attacks exploit urgency and trust, not technology,” he explains.

Industry Experts Also Concerned—Need for Strengthened Countermeasures

An important point suggested by Chainalysis data is that cryptocurrency crimes are no longer just about breaches or misuse. Even if wallets and exchanges implement proper security measures, it remains difficult to counter scams that appear authentic.

Industry experts warn users to be cautious of messages involving urgency or secrecy. “Never send cryptocurrency to anyone. Such messages are usually warning signs,” is a common consensus.

With the high profitability of AI-driven scams and the rapid increase in impersonation techniques, building a secure environment for digital assets is becoming increasingly challenging. Vigilance at the individual level, along with strengthened industry-wide countermeasures, is urgently needed.