Crypto impersonation scams grew 1,400% as AI supercharged fraud

Chainalysis reports a 1,400% surge in crypto impersonation scams in 2025, with AI-driven fraud generating 4.5 times more revenue and operating at 9 times the activity of non-AI scams. Deepfake KYC bypasses cost about $20 and defeat liveness checks 58% of the time, with crypto accounting for 88% of detected deepfake fraud. Enforcement efforts include $4.4 billion in frozen Tether and nearly 5,800 arrests worldwide, but forged identities remain a challenge.