Author:
According to a new research report co-authored by Bitget, SlowMist, and Elliptic, over $4.6 billion was lost to scams in 2024 alone, a 24% increase from the previous year.
Deepfake AI impersonation, social engineering scams, and modern Ponzi schemes have emerged as the top threats to users.
The Most Common Frauds
The report revealed that nearly 40% of high-value frauds in 2024 involved deepfake technology. Scammers are using AI to create convincing videos of public figures like X owner Elon Musk promoting fake investments on social media platforms. In one high-profile case, Hong Kong police arrested 31 members of a syndicate that used AI-generated videos of various crypto executives to steal $34 million.
According to the survey, bad actors are also using AI to bypass KYC procedures, forge customer service chats, and simulate platform dashboards to fake legitimacy. Even Zoom meetings are being weaponized, with scammers sending fake invitations with links to malicious software.
Social engineering remains a major threat by exploiting people’s psychological vulnerabilities. This is being done through AI-powered arbitrage bot scams that promise easy profits through ChatGPT-generated code while directing users to interact with fake interfaces that steal their funds. Other common tactics include Trojan-laced job offers, phishing links in DMs and tweets, and address poisoning.
Additionally, modern Ponzi schemes continue to evolve, now appearing as legitimate decentralized finance (DeFi), NFT, and GameFi projects. The report cited the 2023 JPEX incident in Hong Kong, where the platform promoted itself as a “global cryptocurrency exchange,” using physical ads and celebrity endorsements to market its native JPC token, which supposedly had “high and stable returns.”
However, the platform did not have regulatory approval, leading to authorities tagging it as “highly suspicious.” A subsequent crackdown revealed over $213 million in losses from more than 2,600 complaints by aggrieved users.
Last year, blockchain investigator ZachXBT also exposed a scam network linked to several rug pulls, including Leaper Finance and Zebra Lending. Such rackets use forged KYC documents and fake audit reports to lure users before stealing funds right after the value of their phony tokens surges.
According to Bitget, modern digital swindles differ from traditional Ponzi schemes by incorporating more sophisticated elements. These include advanced “social fission” tactics that use messaging apps and livestreams to drive user-based recruitment, as well as gamified interfaces and fake identities.
Anti-Scam Initiative
Bitget, SlowMist, and Elliptic have also announced the launch of an Anti-Scam Hub to respond to the growing threat posed to crypto by fraudsters. The initiative will be used to trace illicit funds, disrupt phishing networks, and identify deceptive behavior across blockchains.
“Criminals are constantly evolving their methods of attack, using AI and finding new ways to scale their activities,” Arda Akartuna, Lead Crypto Threat Researcher at Elliptic. “This means that reciprocally, we are also working to scale our technology and blockchain capabilities to track and identify the new methods criminals are using.”
A protection fund worth more than $300 million is also being deployed to mitigate user risks.
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
