AI and impersonation cryptocurrency scams will experience record growth in 2025
Fraudsters and fraudsters have increasingly used impersonation scams to steal cryptocurrency from unsuspecting users over the past year, with cases surging 1,400% year-on-year, according to Chainalysis.
Impersonation scams involve scammers posing as trusted people or organizations to trick victims into handing over cryptocurrency, passwords, account access, and other sensitive information.
Chainalysis said in its cryptocurrency crime report on Tuesday that fraudsters are utilizing a variety of tactics in their operations.
“For example, many pig slaughter and investment scams contain elements of impersonation, social engineering, and even technology or wallet-centric fraud,” they said.
The average amount stolen through impersonation scams has also increased by more than 600%, which Chainalysis called a “concerning trend.”
One of the most prominent cases of impersonation fraud in 2025 involved scammers posing as cryptocurrency exchange Coinbase to steal approximately $16 million from victims.
The Brooklyn District Attorney’s Office indicted a man in December on charges he masterminded the fraud. The defendant has pleaded not guilty to a variety of offenses, including grand larceny, money laundering and scheme to defraud. A trial date has not yet been set.
AI helps ‘industrialize fraud’
Artificial intelligence has made fraud more effective and is part of the “industrialization of fraud,” with fraudsters using complex tools from dedicated vendors to defraud more victims, he said.
Chainalytic found that AI-enabled fraud was 4.5x more profitable, with operations becoming more efficient with increased daily revenue and increased transaction volume.
“These metrics suggest greater operational efficiency and a potentially broader victim reach. Increasing transaction volume means AI is allowing fraudsters to access and manage more victims simultaneously, a trend consistent with the industrialization of fraud we have been tracking,” he said.
“Conversely, the increasing number of scams suggests that AI is making them more persuasive.”
There is no “if” to prevent cryptocurrency fraud
The rise in fraud will also lead to an increase in law enforcement actions in 2025. However, Chainalysis urged authorities to focus more on preventing harm in 2026 through improved detection tools and greater adoption of real-time fraud and mule detection systems.
At the same time, more resources should be allocated to strengthen cross-border law enforcement coordination and strengthen support for agencies and enforcement in jurisdictions with limited capacity, they said.
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“There is no silver bullet to address these industrial-scale, entrenched fraudulent activities and requires a multi-pronged response to be effective.”
“As we move into 2026, we expect fraud methodologies to further converge as fraudsters adopt multiple tactics and technologies simultaneously,” Chainalytic added.
How to respond to impersonation scams
A group of cryptocurrency security experts told Cointelegraph last year that one of the best ways to counter social engineering fraud is to reduce human trust through measures such as automating defenses.
We also recommend that you do not reveal sensitive data such as passwords or key phrases, as legitimate companies will never ask for this. You should assume that all interactions and unsolicited messages may be fraudulent and should always verify their authenticity.
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