Cryptocurrency scams using %ArtificialIntelligence (A.I.) %Deepfakes cost consumers and businesses $4.6 billion U.S. in 2024, according to a new report co-authored by Bitget.
The amount of money fleeced from crypto users involving A.I. deepfakes rose 24% year-over-year as criminals increasingly employ sophisticated social engineering tactics.
The findings are contained in cryptocurrency exchange Bitget’s “Anti-Scam Month Research Report,” which highlights how fraudsters are weaponizing generative A.I. to fool people.
Deepfakes are being used to promote false investment schemes, fraudulent tokens, and to bypass identity verification systems on crypto exchanges.
“In just Q1 2025, authorities dismantled 87 deepfake-related scam operations across Asia,” the report states.
In one of the largest operations, Hong Kong police arrested 31 suspects for impersonating crypto executives using A.I. and defrauding people of $34 million U.S.
The report warns that traditional fraud tactics are now largely obsolete and being quickly replaced by more advanced A.I.
Classic Ponzi and pyramid schemes are being replaced by sophisticated DeFi scams that involve gamified dashboards, A.I.-generated photos, and forged credentials.
According to the report, nearly 40% of crypto frauds in 2024 involved A.I. deepfakes.
However, despite the emergence of A.I.-enabled fraud, traditional crypto scams also continue to grow and increase in popularity.
One of the fastest-growing crypto scams involves the global expansion of %Bitcoin (CRYPTO: $BTC) automated teller machines (ATMs), which remain a focal point of concern for regulators.
According to industry data, the U.S. hosts the most Bitcoin ATMs at 30,433, followed by Canada at 3,610, and Australia at 1,824.
While it’s difficult to determine which country experiences the most Bitcoin ATM scams, the U.S., Canada, and Australia are each reporting high levels of fraud related to the machines.
In the U.S., the Federal Trade Commission (FTC) has reported that Americans lost $114 million U.S. to Bitcoin ATM scams in 2023, a tenfold increase from 2020.
