Crypto Scams Cost Investors $4.6 Billion in 2024 674h48 Social Engineering Attacks Surge: Bitget

Phishing rings and fake staking dApps are now go-to tools for cybercriminals. 63t60

Written by Siddharth Suvarna | Updated: 12 June 2025 12:11 IST

Crypto Scams Cost Investors $4.6 Billion in 2024, Social Engineering Attacks Surge: Bitget

Photo Credit: Pexels /Shoma Shimazaki 666g4z

Bitget CEO said, threat to crypto today isn’t volatility — it’s deception

Highlights

The use of AI is making crypto scammers more sophisticated
Crypto holders have been identified to be vigilant
Crypto firms are also forming teams to combat crypto crimes

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Crypto scammers are leveraging AI-driven social engineering tactics to deceive unsuspecting s and swindle them out of their funds. Crypto exchange Bitget highlighted the rising crypto scams in its 2025 Anti-Scam Research Report, compiled with inputs from blockchain security firms SlowMist and Elliptic. The report claimed that an estimated $4.6 billion (roughly Rs. 39,364 crore) was lost to international crypto scams in the year of 2024. Along with social engineering scams, the use of deepfake technologies have also caught momentum among scammers.

Gracy Chen, the CEO at Bitget said that AI has made scams faster, cheaper, and even harder to detect. In social engineering scams, for instance, scammers use AI-generated fake staking offers and phishing bots to steal from unsuspecting victims. The report mentioned cases where deepfake videos of public personalities like Elon Musk and Singapore Prime Minister Lee Hsien Loong were floated on the Internet promoting fraudulent schemes.

"The biggest threat to crypto today isn't volatility—it's deception," Chen said in the report. "We believe fighting back requires both technological rigor and ecosystem-wide collaboration."

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The report noted that phishing rings and fake staking dApps are increasingly common tactics used by cybercriminals to target victims. Scammers are also turning to deepfake impersonations and Ponzi schemes disguised as DeFi, NFT, or GameFi projects.

The report has alerted the crypto community to be vigilant against engaging with unknown or suspicious individuals and services. It said that fraudsters may try to influence their targets using strategies including deception and manipulation. Fake miner rebates and airdrop traps are also being deployed by scammers to entrap potential victims.

"Be skeptical of unsolicited —whether via LinkedIn, Telegram, or email. Never run unfamiliar code or install files from strangers, especially under the guise of job tests or app demos," the report suggested crypto holders. "Trust isn't just earned in crypto—it must be verified."

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With the ongoing advancements in the overall blockchain and AI sectors, the report advised individuals to crypto-related information on social media. It said that frequent crypto s must bookmark official sites, use browser plugins like Scam Sniffer, and avoid connecting wallets to unknown links.

"If you suspect your device is infected, immediately disconnect from the internet, transfer funds to safe wallets, remove malicious programs, and if necessary, reinstall the operating system to minimize losses," the report added.

Bitget's report resonates with the one released by Chainalysis in February 2025, which stated that generative artificial intelligence fueled last year's record losses from crypto scam. In fact, Chainalysis posted a higher estimate of $9.9 billion (roughly Rs. 85,996 crore) in its report.

Owing to the rise in crypto-related cybercrime incidents, web3 firms are coming together to lend technical assistance to the community. Tron, Tether, and TRM Labs have created a financial crimes unit called T3 to recover funds lost in crypto thefts.

Meanwhile, the India are also taking initiatives to provide core technical knowledge to law enforcement officers to help cut down on crypto related crimes.

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Further reading: Deepfake

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at [email protected]. More