Protecting Yourself from Deceptive Cryptocurrency AI Schemes
In the dynamic world of cryptocurrency, the integration of artificial intelligence (AI) has opened up new avenues for innovation and growth. However, this technological advancement has also paved the way for a surge in scams, as criminals find innovative ways to exploit the system.
Deepfakes, generated through AI, have become a significant concern in the crypto industry. These manipulated voice, images, and video content are often indistinguishable from authentic material, making them a potent tool for scammers. Notable incidents include a deepfake video of the former FTX CEO, Sam Bankman-Fried, redirecting users to a hazardous website, and a deepfake attempt on Ripple CEO, Brad Garlinghouse, promoting a false XRP giveaway in 2023 and 2025.
Social proof manipulation is another area where AI is used to deceive potential investors. By generating fake online profiles, simulating engagement, and fabricating endorsements, scammers create the illusion of organic support or approval, misleading victims into believing they are part of a trusted network.
The decentralised nature of cryptocurrency, combined with its global reach and lack of uniform regulatory oversight, creates an environment conducive to scams. This is further compounded by the exponential growth of the audience pool for cryptocurrency, with a significant portion remaining uninformed or inadequately educated about the complexities and potential pitfalls.
AI also enhances the potential for cryptocurrency scams by automating deceptive processes, making scams operate continuously, and creating more believable fraudulent activities. For instance, AI chatbot scams impersonate trusted figures on social media platforms to prey on users' need for quick information or help, leading users to malicious actions.
In addition, AI is used in pig butchering scams to "fatten up" victims with a fake relationship before "slaughtering" their finances by convincing them to invest in a fraudulent crypto platform. AI-assisted pig butchering scams involve the use of AI to create fake personas and cast a wider net, reaching out to potential victims on dating apps, social media, and messaging platforms.
Recent reports suggest that crypto AI scams account for approximately 60% of all deposits into scam wallets on-chain. This alarming statistic underscores the urgency for education and vigilance in the crypto community.
Notable examples of these scams include the rise and fall of the so-called AI project, Harvest Keeper, which resulted in users losing an estimated $1 million in 2023. Moreover, the group "Scattered Spider," with the member known as Urban (aliases "King Bob" and "Gustavo Fring"), has experienced significant growth in Crypto-AI-related scams, conducting phishing and SIM swapping attacks that stole millions of dollars in cryptocurrencies in the US as of late 2024 and 2025.
Even tech giants like Meta have not been immune to these scams. In 2025, a disturbing trend emerged where hackers exploited OpenAI's ChatGPT to gain unauthorized access to users' Facebook accounts.
As the crypto industry continues to evolve, it is crucial for users to stay informed and vigilant. By understanding the potential risks and scams associated with AI, users can take steps to protect themselves and contribute to a safer digital currency ecosystem.
