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Crypto users lost an estimated $17 billion to scams and fraud during 2025, driven largely by impersonation schemes and AI enabled attacks, according to a new report from blockchain analytics firm Chainalysis.
Researchers said on chain inflows to scam related wallets reached at least $14 billion last year and could exceed $17 billion as additional illicit addresses are identified.
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Chainalysis found that impersonation has become the dominant scam tactic. Fraudsters pose as trusted companies, government agencies, or customer support representatives to convince victims to send cryptocurrency.
Losses tied to impersonation scams grew more than 1400 percent compared with 2024. The average amount stolen per incident increased from $782 to $2,764.
Government and private sector impersonation both increased. One large scale campaign relied on fake E Z Pass payment texts, while another involved scammers posing as Coinbase support and directing users to transfer funds to fraudulent wallets.
AI technology played a central role in boosting scam profitability. Chainalysis said AI linked operations extracted about 4.5 times more value per scheme than traditional scams.
Fraud groups now rely on deepfake videos, automated messaging systems, and advanced phishing services to reach larger audiences while reducing detection risk.
Scam operations increasingly resemble organized businesses, with professional money laundering networks and phishing as a service infrastructure operating across multiple regions.
Despite rising losses, law enforcement agencies reported record cryptocurrency seizures during 2025. Authorities seized tens of thousands of bitcoins and billions of dollars in digital assets connected to organized crime groups.
Chainalysis said enforcement efforts improved but continue to trail the rapid growth of impersonation based fraud and AI assisted scam activity.
Chainalysis estimates losses reached at least $14 billion and may exceed $17 billion as more scam wallets are identified.
Impersonation scams accounted for the largest share of losses, including fake support and government themed schemes.
Fraudsters use AI for deepfake content, automated outreach, and phishing tools that increase scale and efficiency.
Yes. Authorities reported record crypto seizures in 2025 tied to fraud and organized crime.