AI-Powered Crypto Scams Surge 456% Amid Rising Sophistication
Cryptocurrency scams have entered a dangerous new phase with artificial intelligence tools enabling unprecedented scale and deception. Reported cases of generative AI-driven fraud surged 456% between May 2024 and April 2025 according to TRM Labs' Chainabuse platform, building on a 78% increase the previous year.
Blockchain analytics reveal AI now fuels 60% of scam wallet deposits, with threat actors employing deepfake videos, cloned voices, and automated bots to create convincing fake Telegram groups. "What were once crude phishing attempts now resemble legitimate communications," observes Chainalysis data showing consistent growth since 2021.
The Phantom wallet team recently exposed a prevalent scheme where victims clicking verification links in spoofed Telegram channels unwittingly install malware. Such attacks demonstrate how AI lowers the technical barrier for criminals while increasing potential victim pools.
