In certain instances, we may earn revenue when a reader makes a purchase or completes a form through our pages or on a partner’s website. We adhere to a strict 
As the value of cryptocurrency assets continues to rise – decentralized finance (DeFi) protocols now lock over $100 billion in total value – they have become more attractive to scammers who are increasingly leveraging advanced technologies. Enabled by realistic artificial intelligence (AI) deepfakes, crypto scams are now exploiting psychology to create attacks that are becoming more personalized and believable.
In 2024 alone, global crypto users lost over $4.6 billion to scams, a 24% increase year on year, according to the Anti-Scam Month Research Report co-authored by cryptocurrency exchange Bitget and blockchain security firms SlowMist and Elliptic.
What are the biggest security threats to cryptocurrency users in 2025, and what are some best practices to guard against them? Read on to find out how to avoid crypto scams.
Key Takeaways
- Over the past two years, scammers have escalated their tactics beyond basic phishing by weaponizing AI, social engineering, and trust-based fraud models.
- Scammers are effectively using AI-generated deepfake videos to promote fake investments, bypass Know Your Customer (KYC) verification systems, and orchestrate deceptive video calls.
- Social engineering scams seek to gain access to victims’ wallets via social platforms, including job offer Trojans, phishing bots, and fake staking offers.
- Ponzi schemes rely heavily on social media to drive users to bring in new members, forming classic pyramid-style models.
- Awareness, training, and a healthy level of skepticism can help individuals and businesses guard against scams.
2025’s Biggest Scam Threats
The psychological nature of modern cryptocurrency scams is insidious: rather than simply being tricked to reveal their passwords, victims are gradually persuaded to give up their personal data or funds. Scammers are becoming adept at exploiting trust, fear, or greed.
Gracy Chen, Bitget’s CEO, told Techopedia:
“In our anti-scam report, we highlighted how AI has made scams significantly more sophisticated and convincing. These aren’t just phishing emails anymore. They now look like fake Zoom calls, AI-generated videos of public figures, and Trojan-laced job offers. The realism of these scams has made it increasingly difficult to discern fact from fiction, which unfortunately makes them more effective.”
There are three main tactics dominating the threat landscape, which encapsulate the 10 most frequent scams.
AI Deepfake Impersonation
In 2024, nearly 40% of high-value frauds involved deepfake technology, according to the Anti-Scam report.
Deepfake impersonation videos are now highly realistic. AI algorithms can precisely mimic a person’s facial expressions and voice tones of their targets, making it difficult for users to distinguish real from fake.
Videos depicting public figures, crypto project founders, or exchange executives are often widely distributed on social media platforms to mislead viewers. These attacks exploit users’ inherent trust in “authority figures” and “official channels.”
Scammers are also using AI to create deepfake videos of victims’ faces from their photos, creating dynamic images that dupe KYC systems on exchanges or wallet platforms, even responding to voice commands. In this way, they can take control of accounts and steal assets.
Virtual identity investment scams involve creating deepfake identities and content, setting up multiple phishing groups on Telegram, and making friends with unsuspecting users to lure them into investing in fraudulent platforms.
Scammers go so far as to simulate chat logs, customer service conversations, and earnings screenshots to build a credible illusion.
Scammers impersonate Zoom by sending victims fake meeting invitations that contain links to trojan-infected meeting software. During the meeting, the scammers may use deepfake videos to disguise themselves as executives or technical experts to manipulate victims into giving them access to their device or transferring funds.
Social Engineering Trojans & Bots
Low-tech social engineering attacks exploiting psychological vulnerabilities to manipulate user behavior through disguise, guidance, intimidation, and other tactics are highly effective.
AI arbitrage bot scams typically start with a detailed video tutorial, in which the crypto scammer makes false claims about the bot’s code to give the impression it is legitimate and play on preconceived notions that AI and crypto can lead to easy money.
Victims are directed to send startup funds into the bot’s supposed contract address, which transfers the money to the scammers’ wallets.
Other common social engineering tactics include Trojan-laced job offers, fake interview coding assignments, phishing links seeded under tweets or in Telegram DMs, address poisoning with similar-looking wallet strings, “Pi Xiu” honeypot tokens that block selling, and rebate scams disguised as staking platforms.
Modern Ponzi Schemes
Traditional Ponzi schemes and pyramid scams have evolved to leverage on-chain tools, viral social media trends, and AI-powered deepfakes.
These scams typically masquerade as DeFi, non-fungible token (NFT), and gaming finance (GameFi) projects, packaging deceptions as project fundraising, liquidity mining, or platform token staking.
But just like classic Ponzi schemes, once the cash flow slows down or the operators execute rug pulls, the system collapses quickly.
Crypto Ponzi schemes create an illusion of technical innovation by leveraging open-source smart contracts, NFT packaging, and on-chain data, misleading users into believing they are legitimate.
They take advantage of new, complex concepts like yield farming, staking rewards, and node dividends to hide the flow of funds and market manipulation. They can also use tactics like adopting gamified user interfaces and deepfakes of project founders and supporters.
“Crypto scams aren’t just draining wallets – they’re eroding trust in the industry itself,” the Anti-Scam report states.
Biggest Crypto Scams: Real-World Impact
Chen told Techopedia:
“The realism of these scams has made it increasingly difficult to discern fact from fiction, which unfortunately makes them more effective. Crypto is built around strong, engaged communities. Whether on Twitter, Telegram, or Discord, scammers have tapped into this dynamic, targeting comment sections and conversation threads to gain trust before executing phishing attacks. Their deep understanding of the crypto ecosystem allows them to tailor scams in ways that feel native and credible to users, making the threat even harder to detect.”
There are countless examples of how effective the biggest crypto scams are.
- In January 2025, Hong Kong police arrested 31 members of a deepfake scam ring that stole HK$34 million from victims across Singapore, Japan, Malaysia, and other Asian countries by impersonating crypto executives. That was just one of 87 similar operations dismantled across Asia during the first quarter of the year alone, according to SlowMist.
- In February 2025, hackers hijacked the X (Twitter) account of Tanzanian billionaire Mohammed Dewji and posted deepfake videos promoting a fake token, $Tanzania, that brought in $1.48 million within hours.
- Users have reported losing funds to AI deepfake fraud depicting Ripple CEO Brad Garlinghouse, MicroStrategy CEO Michael Saylor, and Ark Invest CEO Cathy Woods.
The likeness of Tesla CEO Elon Musk, who has been a vocal crypto advocate on social media, has frequently appeared in fake giveaway schemes.
Analysis by TRM Labs of a giveaway scam on YouTube using a deepfake of Musk found that a reported crypto wallet address appeared to have received funds from multiple victims within around 20 minutes, likely when the video was livestreamed on YouTube. The scammers received at least $5 million between March 2024 and January 2025.
In recent months, various US state authorities have reported a rise in their residents losing millions of dollars to bitcoin scams involving kiosks and ATMs.
How to Fight Back: Expert Insights & Tips
To guard against the continuously evolving array of scam tactics, individuals and business users must be prepared and proactive. SlowMist suggests five best practices to avoid falling victim to crypto scams.
Discern the authenticity of social media content
Always verify a project’s official website or trusted community channels for wallet connections, airdrop claims, or staking operations. Be skeptical of unsolicited contact, never click on links in posts or comments, and install security plugins to block phishing links in real time to reduce the risk of accidental clicks.Be cautious of risks introduced by AI tools
The Model Context Protocol (MCP) standard implementation has become a key bridge connecting AI large language models (LLMs) with external tools and data sources, but it also brings new security challenges.Use on-chain tools to identify risks
Use anti-money laundering and tracking tools to evaluate projects and assess tokens suspected of being rug pulls or otherwise fraudulent. Check platforms like Etherscan or BscScan to see if victims have posted warnings in comment sections. Check that smart contracts are audited by credible third-party firms.Be skeptical of guaranteed high returns
Exercise caution when evaluating high-yield projects, as abnormally high returns often imply similarly high risk. Remember that claims that appear too good to be true probably are.Beware of social-trust-based file attacks
Never run unfamiliar code or install files from strangers, particularly if they involve job offers or technical test invitations. Disable automatic downloads and scan files.
Crypto fraud prevention starts with knowing what to look out for, such as the characteristics of AI-generated deepfakes. Chainalysis noted:
“Deepfake scams often rely on urgency and authority – for instance, a video of a CEO like Elon Musk announcing a limited-time investment opportunity. Look for unnatural blinking, odd mouth movements, or inconsistent lighting.”
Phishing attempts might appear to be legitimate at first, but the telltale signs include subtle typos in domain names, crypto wallet addresses, or email addresses.
“Businesses should go beyond basic cybersecurity training by teaching employees how to spot synthetic content and social engineering tactics. Additionally, regular audits of customer support channels, two-factor authentication (2FA), and role-based access controls can help minimize the impact of impersonation attacks,” Chainalysis experts said.
Awareness and education can help to build stronger collective defenses.
Chen said:
“The reality is that scams may never fully disappear, but we can create a stronger, more secure environment that deters bad actors and protects our ecosystem. As scams grow more sophisticated, collaboration and knowledge sharing across the industry are essential. By openly exchanging experiences and best practices, we make it harder for scammers to succeed.”
The Bottom Line
Crypto scams in the AI era have evolved from tricking users to reveal login details to a combination of technical and psychological manipulation. Users must be skeptical and ask questions to verify whether a project they are presented with is legitimate.
As AI-generated videos, fake recruitment pipelines, and tokenized Ponzi schemes redefine how trust is weaponized, crypto security depends not just on smarter technology but on increased awareness and stronger operational safety practices.
FAQs
What are common crypto scams?
How are AI deepfakes being used in crypto scams?
How can you tell if someone is a crypto scammer?
Can you get your money back if you get scammed on crypto?
How can I verify if a crypto project or platform is legit?
References
- DeFi Dashboard (DefiLlama)
- Bitget Anti-Scam Report Shows AI-Related Scams Drive $4.6B (GlobeNewswire)
- Elon Musk used in fake AI videos to promote financial scam (RMIT University)
- AI-enabled Fraud: How Scammers Are Exploiting Generative AI (TRM labs)
- AI-Powered Crypto Scams: How AI is Being Used for Fraud (Chainalysis)
