Once associated with financial innovation, the crypto industry has become a ground for fraud. 2025 could mark a peak in this trend.
AI's Role in Fraud
According to Chainalysis, crypto-related scams generated about $9.9 billion in 2024. This figure could exceed $12 billion in 2025 due to the rise of generative AI. Elad Fouks, head of fraud products at Chainalysis, notes that 'generative AI now allows for the creation of entirely fictitious identities, rendering KYC checks obsolete.' This lets scammers manipulate voices and produce highly realistic texts, bypassing security measures and misleading even careful investors.
Organized Crime: Industry Developments
Frauds are no longer the work of individuals but organized like real criminal enterprises. Platforms like Huione Guarantee offer access not only to legitimate services but also to the infrastructure for fraud. Underground markets enable cybercriminals to purchase ready-to-use scam kits, hire specialized developers, and outsource operations to false 'call centers'.
What Awaits the Crypto Sector?
Without effective preventive measures, investor trust could suffer. Regulators and trading platforms face pressure to tighten verification protocols and regulate AI in financial transactions.
Crypto fraud is growing more sophisticated, raising concerns about market trust. Decisive action is needed to counter new threats.
