Crypto scams are now entering a new era as the use of artificial intelligence (AI) is expected to surge by 500% throughout 2025, according to a recent TRM Labs report.
With the help of AI such as large language models (LLM), scammers are able to carry out scams on a large scale, more convincingly and organized like a professional business.
As a result, around $35 billion in crypto assets were reportedly flowing to scammers' addresses last year.
AI technology allows scammers to create messages tailored to the victim's language and culture, and even use deepfake videos, voice clones and fake images to impersonate real individuals.
There is a case involving fake Zoom calls using deepfake that almost succeeded in deceiving the founder of a crypto company.
More worryingly, the scams are now carried out in layers, starting with a romance scam to build trust, followed by fake investments, and ending with fictitious tax or fee demands.
All of this is carried out by networks of organized fraudsters, complete with playbooks, AI automation tools, and illicit services that support their operations.
TRM Labs estimates that the total value of crypto involved in illicit activity will reach $158 billion by 2025, up 146% from the previous year.
The reality is that crypto scams are no longer the work of individuals, but have now become a global industry that is increasingly sophisticated and difficult to detect.
