What happened?
Generative AI and automation have let scammers scale up operations using deepfakes, cloned voices, fake apps and automated token networks. Industry and FBI data show scams are the bulk of crypto crime, with U.S. victims losing about $9.3 billion last year and AI-enabled scams surging hundreds of percent. Attacks now move and launder funds in seconds across thousands of wallets, making fraud much faster and harder to trace.
Who does this affect?
Every crypto user is at greater risk—retail investors, executives targeted by voice deepfakes, and people falling for emotionally driven scams. Exchanges, wallets and DeFi platforms face growing pressure to detect and stop automated attacks and spoofed apps in real time. Law enforcement, compliance teams and security vendors must scale AI-powered defenses or risk being outpaced by criminal automation.
Why does this matter?
Markets will see bigger demand for AI-driven security and blockchain analytics, which should benefit firms that can stop scams at scale. At the same time, rising fraud and likely tougher regulation will increase compliance costs for platforms and could shake investor confidence. The tug-of-war between faster criminal AI and stronger defensive AI will drive volatility, shift where users choose to custody assets, and decide which companies capture growth in the crypto ecosystem.