Crypto Scams Cost Investors $4.6 Billion in 2024: Bitget
Crypto scams cost investors an estimated $4.6 billion in 2024, driven by AI social engineering tactics and deepfake technology. Bitget’s report emphasizes the urgency for vigilance as scammers employ complex schemes, noting significant losses and the need for community collaboration and proper security measures. Notably, the rise in cyber incidents prompts initiatives from web3 firms and law enforcement to bolster protections against fraud.
Crypto scams have surged dramatically, costing investors an astonishing $4.6 billion globally in 2024, as highlighted by Bitget in its Anti-Scam Research Report, created with contributions from blockchain security experts SlowMist and Elliptic. The increasing sophistication of scams, particularly those using AI-driven social engineering tactics, poses a significant threat to the integrity of the crypto ecosystem. Scammers are also maximizing the use of deepfake technology, ensnaring users by leveraging seemingly legitimate personas.
Gracy Chen, Bitget’s CEO, expressed serious concern over the efficacy of these tactics. “AI has made scams faster, cheaper, and even harder to detect,” she stated. In particular, scammers exploit AI-generated offers, phishing bots, and deepfake videos featuring notable figures like Elon Musk to manipulate victims into fraudulent schemes. Chen’s poignant remark, “The biggest threat to crypto today isn’t volatility—it’s deception,” underscores the urgency of collaborative action against this rising menace.
The report offers a stark warning, noting that phishing rings and deceptive dApps are becoming increasingly common as cybercriminals attempt to exploit users. This alarming trend emphasizes the need for vigilance, as fraudsters craft nefarious schemes, including Ponzi-style projects masquerading as DeFi, NFT, or GameFi initiatives. To protect themselves, crypto users are urged to steer clear of unknown contacts or services. “Be skeptical of unsolicited contact—whether via LinkedIn, Telegram, or email,” the report advises.
Additionally, it suggests refusing to run odd code or download files from untrusted sources, especially those claiming to be job-related or app demos. Moreover, it highlighted that trust in the crypto world has to be substantiated rather than assumed.
With the rapid evolution of blockchain and AI technologies, verification of information is more crucial than ever. Users should bookmark official sites and utilize browser tools like Scam Sniffer to safeguard against scams. If there’s a suspicion of device compromise, the report advises immediate disconnection from the Internet, securing funds, erasing harmful programs, and possibly reinstalling the operating system to limit losses.
Interestingly, Bitget’s findings resonate with an earlier Chainalysis report from February 2025, which noted that generative AI played a significant role in driving up losses last year, with a staggering estimate of $9.9 billion attributed to crypto scams. In light of this alarming trend, various web3 firms, including Tron and Tether, are stepping up to aid the community. They formed a collaborative unit dubbed T3, aimed at recovering lost funds through technical assistance.
Additionally, law enforcement efforts are intensifying in the UK and India, where authorities are rolling out training programs to equip officers with the necessary skills to combat crypto-related crimes more effectively.
In summary, the wave of crypto scams hitting investors hard, with losses reaching $4.6 billion in 2024, raises pressing alarms about security vulnerabilities. With scammers employing advanced AI tactics and deepfakes, the need for awareness and caution among crypto users has never been more critical. Collaborations among firms and ongoing training for law enforcement officials represent hopeful strides in combating this global issue. Investor vigilance, heightened security practices, and community support are vital steps to safeguard against these increasingly sophisticated threats.
Original Source: www.gadgets360.com
