In 2025, crypto scams reached an all-time high, with losses hitting a staggering $17 billion. This surge wasn't just about more scams but smarter, more convincing ones. The average amount lost per scam jumped to $2, 764, a huge leap from $782 the previous year.

AI and impersonation tactics played a big role in this increase. Scams linked to AI vendors made about $3. 2 million each, which is 4. 5 times more than those without AI ties. These scams often used face-swap software, deepfakes, and large language models, mostly sold by Chinese vendors through Telegram.

Government impersonation scams saw a massive 1, 400% increase. Scammers posed as officials from government agencies, financial institutions, and crypto platforms, making their tricks more believable and harder to spot.

One notable scam targeted U. S. residents with fake "E-ZPass" toll alerts. This operation, traced to a Chinese group called "Darcula" or the "Smishing Triad, " sent out 330, 000 texts in a single day. Despite its scale, the infrastructure was cheap, with phishing kits costing less than $500.

Pig butchering scams, where scammers build relationships before swindling victims, also saw a rise. These scams involve building trust over time, often posing as romantic or investment partners, before persuading victims to transfer large sums of money.

Scammers are also shifting from centralized exchanges to decentralized finance options like DEXs, DeFi bridges, and protocols to move their stolen funds. This trend is part of a broader move toward decentralizing scam operations, leveraging the permissionless nature of these tools to keep funds moving.

The use of AI in scams is growing, but basic automation is usually enough to move funds on-chain. More advanced AI tools could be used to create fake, KYC-compliant exchange accounts in bulk, helping scammers cash out into traditional currencies.

In recent years, scam compounds have emerged across Myanmar and Cambodia, turning pig butchering into a massive industry fueled by human trafficking and forced labor. These operations, often run by Chinese organized crime networks, use specialized laundering channels to flip stolen crypto into luxury assets.

The scale of this crisis was underscored in December when the U. S. Department of Justice moved to shut down domains linked to a major compound in Myanmar. These cases highlight the integration of modern cryptocurrency scam operations with traditional organized crime and the human cost of these schemes.

Crypto Scams Hit Record High in 2025: AI and Tricks to Blame

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