AI-Powered Crypto Fraud Surges 500% as Scammers Scale Operations

[etfs]

Artificial intelligence–driven crypto fraud has skyrocketed by 500% over the past year, according to a new report from TRM Labs. The firm found that generative AI is dramatically accelerating the scale and speed of phishing attacks, identity theft, and money laundering schemes across the digital asset ecosystem. Once reliant on call centers and human operators, large-scale crypto scams are now increasingly automated, allowing criminals to execute highly personalized attacks at unprecedented speed.

The report highlights how large language models enable scammers to craft convincing phishing emails, fake investment platforms, and even realistic chatbots, while AI translation tools localize scams across multiple languages. Deepfake audio and video are also being used to impersonate executives and public figures with alarming realism. Blockchain analytics firm Chainalysis reinforced the findings, noting that AI-enabled scams generate significantly more revenue and transactions than traditional fraud operations. With illicit crypto transactions hitting $158 billion last year, experts warn that combating AI-driven crime will require defenders to adopt the same advanced technologies now being weaponized by attackers.

[madtrader]

ai didn’t invent fraud it just put it on turbo mode