The rise of synthetic media tools is fueling a surge in cryptocurrency scams, with losses already exceeding $12.5 billion annually. Experts warn that 2025 could be the worst year on record if users don’t bolster their defenses.
Scammers’ new playbook
Scammers are using AI-generated content to clone celebrities and financial analysts, promoting fake investment opportunities. They’ve already pulled off massive heists, like the $25.5 million Arup case in Hong Kong, where a deepfake CFO authorized a transfer via video call. Other tactics include:
- Real-time voice cloning to impersonate family members or exchange executives
- Multi-deepfake video calls featuring synchronized replicas of multiple executives
- “Too-good-to-be-true” ads featuring AI-generated videos of celebrities
- Wallet drainers disguised as AI-powered trading assistants
Regulators are taking notice. FinCEN, FTC, and NASAA have issued warnings about deepfakes and AI-generated scams. FinCEN’s alert highlights seven “red flags” for financial institutions to watch out for.
Protecting yourself
To avoid falling victim, follow these best practices:
- Verify investment proposals through secondary channels
- Be wary of “urgency” tactics and guaranteed returns
- Analyze audio and video for deepfake signs, such as irregular blinking or digital noise
- Enable two-factor authentication and withdrawal limits
- Stay up-to-date on scam tokens and blocked URLs
The combination of affordable AI tools and liquid cryptocurrency markets creates a perfect storm for scams. Preliminary data shows losses in Q1 2025 already 18% higher than the same period last year. By adopting best practices and staying vigilant, users can help mitigate this growing threat.