Cryptocurrency frauds using AI-generated deepfakes have reached a new high in 2025, with losses topping $200 million in just the first quarter. According to GoPlus Security, these scams have grown increasingly sophisticated, exploiting deepfake technology to manipulate victims into handing over their digital assets. The rapid rise of these scams poses a serious threat to the integrity of the digital asset space.
The Scale of the Fraud
In the first quarter of 2025, deepfake scams have cost crypto investors over $200 million. This statistic reveals just how dangerous AI-driven fraud has become in the cryptocurrency world. The ability to mimic real people with high accuracy, combined with the growing value of digital currencies, has made the crypto market a prime target for cybercriminals using deepfake technology.
Multi-Stage Scams: Gaining Trust, Then Stealing Assets
The fraud tactics employed by cybercriminals are more sophisticated than ever. These multi-stage scams typically start with the fraudster promoting a seemingly legitimate crypto project, often with an irresistible offer like “free USDT, no transaction fees.” The goal is to build trust with the victim by offering small rewards, such as tokens or USDT, which reinforces the belief that the investment is safe and reliable.
As trust is established, the scammers push their real agenda: gaining control over the victim’s wallet. This is achieved by convincing the victim to grant token access to an Externally Owned Account (EOA). Once this access is granted, malicious bots track the wallet and wait for the optimal moment to drain the assets in seconds.
AI Deepfake Technology in Fraudulent Schemes
The use of deepfake technology has become a cornerstone of these cryptocurrency scams. Fraudsters use AI to create realistic simulations of voices and facial expressions of famous individuals or trusted figures in the crypto space. This tactic is designed to trick victims into believing they are receiving authentic investment advice from reputable sources.
One example of this occurred when Changpeng Zhao (CZ), the co-founder of Binance, issued a warning about deepfake videos impersonating him and promoting fraudulent crypto projects. In another case, Ashesi University in Ghana was targeted by scammers using deepfakes to solicit fake investment opportunities, showing just how widespread and effective this technology has become in the hands of criminals.
Red Flags and Security Tips
As deepfake technology becomes more common, users need to stay alert to the signs of potential scams. According to McAfee, the average person may encounter multiple deepfake videos daily. To avoid falling victim to these scams, users should be cautious of:
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Promises of high returns that seem “too good to be true”
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Fake endorsements or testimonials from celebrities or influencers
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Platforms, wallets, or exchanges that do not exist
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Pressure to make quick investment decisions
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Requests for private keys or up-front payments
To protect themselves, GoPlus Security recommends that users avoid granting unlimited access to tokens and instead use on-chain tools like revokers, firewalls, and utilities that allow them to revoke permissions granted to malicious entities.
The Growing Threat of AI-Powered Fraud
The combination of deepfake AI technology and blockchain vulnerabilities presents a growing threat to crypto users. As these scams become more sophisticated, it’s increasingly difficult for average users to distinguish between legitimate opportunities and fraud. One moment of inattention can lead to the loss of significant amounts of digital assets.
As the use of deepfake technology in cryptocurrency scams grows, so too does the need for enhanced vigilance and security. Crypto users must be proactive in safeguarding their accounts, verifying information through official channels, and never sharing sensitive information, no matter how trustworthy the source may seem. With AI-powered fraud on the rise, staying informed and secure is more crucial than ever.