AI Chatbots and Deepfake Software Are Changing The Game in Crypto Scams

• AI tools like chatbots and deepfakes are enhancing crypto scams.
• The FBI cites $9.3 billion in crypto-related fraud losses for last year.
• Sextortion and pig butchering scams are on the rise due to AI.
• North Korean threat actors have used deepfakes to impersonate executives.
• Crypto scams now represent the most lucrative illicit activity.

AI Tools Are Amplifying The Reach Of Scams

AI Tools Expanding Criminal Cyber Scams With Automation Ai chatbots and deepfake technology are proving to be a rising tide of trouble in the world of cryptocurrency scams. According to a troubling report from blockchain analytics platform Elliptic titled ‘The State of Crypto Scams 2025’, these advanced AI tools have helped criminals automate and broaden the ways they carry out their schemes. Just to give you an idea of the scope of this issue, approximately half of the fraud losses reported in the U.S. last year were related to crypto, an alarming statistic that underscores the severity of this growing problem.

The Impact of Deepfake Technology on Scam Success

Rising Crypto Scams Driven By Technological Advancements The report highlights some specific scam types that have surged in popularity, including sextortion and the notorious pig butchering technique, which exploits victims over time. The use of sophisticated tools like deepfake videos — which can convincingly impersonate notable figures — has made it easier to ensnare victims, often bypassing language barriers that would have once separated them from their duplicitous schemes. Notably, North Korean hackers have resorted to these methods to impersonate crypto executives, further adding to the urgency of this issue by leveraging both video calls and malware to manipulate their targets.

Scams Now The Most Profitable Illicit Activity

Marketplaces Facilitate Fraud at an Alarming Rate Perhaps the most startling takeaway from Elliptic’s findings is that scams are evolving into the most profitable form of illicit activity within the crypto sector. The report reveals that dedicated online marketplaces, which serve organized fraud rings, have reportedly moved over $30 billion in cryptocurrency. That’s a staggering figure and quite higher than the equivalent transactions that occur within traditional drug-centric dark web markets. As this trend continues, regulatory bodies may need to step up their game to protect vulnerable consumers from these increasingly adept scammers.

In short, AI technologies like chatbots and deepfakes are driving a new era of cryptocurrency scams that are becoming alarmingly profitable. With historical losses tied to crypto fraud reaching staggering highs, it’s clear that the landscape of cybercrime is shifting dramatically. As scammers get more sophisticated, it will be crucial for both regulators and individuals to adapt and respond to this evolving threat.