AI-Generated Fraud Reaches Alarming Scale: Deepfakes Used in 4 of 10 Major Crypto Scams Last Year

AI Deepfakes Drive Surge In Crypto Fraud As $4.6 Billion Lost In Scams

Deepfake technology is now at the heart of a rising wave of crypto fraud, with nearly 40% of all high-value scams in 2024 involving AI-generated impersonations, according to Bitget’s Anti-Scam Report 2025.

The research, co-authored with blockchain security firm SlowMist and analytics provider Elliptic, paints a troubling picture of how synthetic media is transforming the scamming playbook.

From Elon Musk To Fake Zoom Calls: The New Faces Of Deception

A common scam tactic involves deepfake videos of Tesla CEO Elon Musk promoting bogus giveaways or investment schemes.

But the deception doesn’t stop there.

According to the report, scammers are now impersonating executives, celebrities, founders—even journalists—using AI-generated audio and video.

Some victims were lured into fake Zoom interviews or meetings, where attackers, often posing as reputable figures, gained remote access to the victim’s device.

These calls were designed to steal sensitive data, including crypto wallet keys, under the pretext of job offers or media interviews.

Even blockchain personalities weren’t spared.

Polygon co-founder Sandeep Nailwal revealed that people had asked if he was on Zoom calls with them, questioning whether he was requesting they install a script—a warning sign of deepfake-led phishing.

Scammers Evolve With AI As Deepfakes Bypass Trust Checks

The report stated,

“Crypto scams have entered a new era—driven by AI deepfakes, social engineering, and deceptive project fronts.”

These scams no longer rely solely on malware or shady links.

Instead, they mimic human interaction with terrifying accuracy, exploiting emotion, familiarity, and visual trust.

Authorities dismantled at least 87 AI-related scam rings across Asia in early 2025 alone.

In one major bust, 31 suspects were arrested in Hong Kong after defrauding victims of $34 million through synthetic impersonations of crypto executives.

Deepfakes now feature realistic voice simulation, facial expressions, and real-time reactions—making them hard to detect, especially on social media platforms like Telegram or X.

In May, actor Jamie Lee Curtis confronted Meta CEO Mark Zuckerberg after discovering a fake AI ad that misused her likeness without consent.

Old Tricks, New Disguises: Ponzi Schemes Get A Digital Makeover

The report highlighted a disturbing shift in how classic Ponzi frauds now operate.

Scam projects disguise themselves as DeFi, NFT, or GameFi ventures.

These schemes often feature slick dashboards, game-like interfaces, and AI-generated “team photos.”

But at their core, they remain what they’ve always been—payouts to early investors using money from newer victims.

One infamous example was JPEX, which used celebrity endorsements and public ads to push a billion-dollar fraud under the veil of crypto staking.

Others, like Leaper Finance and Zebra Lending, used fake audits and rotating platforms to repeatedly drain funds across multiple Layer 1 blockchains.

These schemes now add “social fission” mechanics—encouraging users to invite others via chat apps and livestreams—creating a chain of trust that collapses once operators vanish with the funds.

Social Engineering Exploits Psychology, Not Tech

Not all scams rely on flashy tech.

Many exploit basic human psychology.

The “pig butcher” scam—a form of long-term emotional manipulation—remains a top threat.

Here, scammers befriend, romance, or gain trust before slowly introducing fake investment opportunities.

Source: Elliptic Investigator

Social engineering scams are described as “low-tech, yet highly effective,” often bypassing digital security altogether.

According to Bitget, this tactic is still among the top three most dangerous types of crypto fraud.

Crypto ATM Fraud Adds To The Global Toll

Outside of online scams, physical infrastructure like Bitcoin ATMs has also become a fraud hotspot.

The U.S. leads the world with over 30,000 crypto ATMs, followed by Canada and Australia.

In 2023 alone, Americans lost over $114 million through ATM-related crypto scams—a tenfold surge since 2020.

In Australia, A$3.1 million was lost in similar incidents between January 2024 and January 2025.

When Reality Becomes Optional

If we can no longer trust what we see or hear, what’s left to believe in?

Deepfake scams have shifted fraud from an external threat to a personal battleground—where trust, emotion, and identity itself can be forged with a click.

Source: Bitget’s Anti-Scam Report 2025

The danger isn’t just financial—it’s existential.

Crypto’s next challenge isn’t regulation or volatility.

It’s defending reality.