AI-Driven Scams Propel Crypto Fraud Losses to Estimated $17 Billion

Cybercriminals stole an estimated $17 billion in cryptocurrency scams and fraud in 2025 as impersonation tactics and artificial intelligence enablement surged to record levels, according to new research released by blockchain analytics firm Chainalysis.

While the firm has confirmed at least $14 billion in illicit on-chain activity so far, it projects the final figure will likely exceed $17 billion as more illicit wallet addresses are identified in the coming months. This represents a significant escalation from the $12 billion lost in 2024, driven largely by a dramatic increase in the value extracted from individual victims. The average scam payment soared from $782 in 2024 to $2,764 in 2025, indicating that fraudsters are successfully targeting higher-value assets. Overall scam inflows have surged, with impersonation tactics specifically seeing a staggering 1,400% year-over-year growth.

Although high-yield investment programs and "pig butchering" schemes remain the dominant categories by volume, the report highlights a concerning convergence across scam types. Fraudsters are increasingly leveraging sophisticated tools, including SMS phishing services and complex money laundering networks, to target victims more effectively. Central to this evolution is the adoption of artificial intelligence; the research found that AI-enabled scams were 4.5 times more profitable than traditional methods last year. Scams with on-chain links to AI vendors extracted an average of $3.2 million per operation, compared to just $719,000 for those operating without such technology.

Chainalysis predicts this technological integration is set to become the standard, noting that the industry is moving toward a future where "virtually all scams will incorporate AI into their operations to some degree." However, despite the rising losses and increasing sophistication of criminals, the crypto landscape also saw record successes in law enforcement. Significant actions included a landmark money laundering case by the UK’s Metropolitan Police, which recovered over 61,000 Bitcoin currently valued at roughly £5 billion, and a massive $15 billion seizure linked to the Prince Group, signaling an improved transnational capability to combat crypto fraud.