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

Crypto scammers are leveraging AI-driven social engineering tactics to deceive unsuspecting users 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."

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 contact—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."

With the ongoing advancements in the overall blockchain and AI sectors, the report advised individuals to verify crypto-related information on social media. It said that frequent crypto users 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 UK and India are also taking initiatives to provide core technical knowledge to law enforcement officers to help cut down on crypto related crimes.