$4.6 B Lost to Crypto Scams as AI Deepfakes Lead the Charge: Report
AI deepfakes took crypto scam losses to $4.6 B last year, pressing Bitget and partners to introduce a $300M fund to interfere with scams rings.
According to a brand-new research study report co-authored by Bitget, SlowMist, and Elliptic, over $4.6 billion was lost to frauds in 2024 alone, a 24% boost from the previous year. Deepfake AI impersonation, social engineering rip-offs, and modern Ponzi plans have actually emerged as the top threats to users.
The Many Common Frauds
The report revealed that nearly 40% of high-value scams in 2024 involved deepfake technology. Fraudsters are utilizing AI to produce convincing videos of public figures like X owner Elon Musk promoting phony investments on social networks platforms. In one prominent case, Hong Kong authorities jailed 31 members of a syndicate that utilized AI-generated videos of numerous crypto executives to steal $34 million.
According to the survey, bad stars are also utilizing AI to bypass KYC procedures, create customer support chats, and replicate platform control panels to fake authenticity. Even Zoom meetings are being weaponized, with scammers sending fake invites with links to harmful software.
Social engineering remains a significant danger by exploiting people’s mental vulnerabilities. This is being done through AI-powered arbitrage bot frauds that promise simple revenues through ChatGPT-generated code while directing users to communicate with fake interfaces that take their funds. Other common tactics consist of Trojan-laced job offers, phishing links in DMs and tweets, and address poisoning.
Additionally, modern-day Ponzi plans continue to evolve, now appearing as legitimate decentralized finance (DeFi), NFT, and GameFi projects. The report cited the 2023 JPEX incident in Hong Kong, where the platform promoted itself as a ‘global cryptocurrency exchange,’ using physical ads and celebrity endorsements to market its native JPC token, which allegedly had ‘high and stable returns.’ However, the platform did not have regulatory approval, causing authorities tagging it as ‘extremely suspicious.’ A subsequent crackdown revealed over $213 million in losses from more than 2,600 complaints by aggrieved users.
Last year, blockchain detective ZachXBT also exposed a scam network connected to a number of carpet pulls, including Leaper Finance and Zebra Loaning. Such rackets use forged KYC documents and fake audit reports to lure users before stealing funds right after the value of their fake tokens surges.
According to Bitget, modern-day digital scams differ from traditional Ponzi schemes by incorporating more advanced elements. These include sophisticated ‘social fission’ strategies that utilize messaging livestreams and apps to drive user-based recruitment, in addition to gamified interfaces and fake identities.
Anti-Scam Initiative
Bitget, SlowMist, and Elliptic have also announced the launch of an Anti-Scam Center to respond to the growing threat posed to crypto by scammers. The initiative will be used to trace illegal funds, disrupt phishing networks, and identify fraudulent behavior across blockchains.
‘Criminals are constantly evolving their methods of attack, using AI and finding new ways to scale their activities,’ said Arda Akartuna, Lead Crypto Threat Researcher at Elliptic. ‘This means that reciprocally, we are also working to scale our technology and blockchain capabilities to track and identify the new methods criminals are using.’
A defense fund worth more than $300 million is also being deployed to mitigate user risks.
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