AI is turning crypto fraud into a machine-scaled industry, according to new data from blockchain intelligence firm TRM Labs.
In a fresh report, TRM says illicit crypto volume hit an all-time high of $158 billion in 2025, marking a nearly 145% increase year over year.
Within that total, scam-related activity alone accounted for an estimated $30 billion, with the firm warning that underreporting likely means the real figure is significantly higher.
At the same time, TRM observes a roughly 500% surge in AI-enabled scam activity over the past year.
The firm says generative AI has fundamentally altered the economics and scalability of scams, removing constraints that have kept a lid on fraudulent schemes.
“Historically, however, even large-scale fraud operations were constrained by human labor. Investment scams, romance fraud, impersonation schemes, and technical support fraud required sustained engagement by trained operators. Call centers, script libraries, multilingual recruitment, shift management, and quality control imposed natural ceilings on growth.
Today, artificial intelligence has removed many of those ceilings.”
According to TRM Labs, thieves are using generative AI to produce phishing emails, fake investment sites and realistic support chatbots in seconds. Large language models can personalize outreach to specific demographics, increasing engagement rates. AI translation tools allow scams to be localized across borders without language barriers.
TRM says impersonation is also accelerating. Deepfake audio and video tools are being used to mimic executives, romantic partners and public figures. In crypto markets, that includes fabricated endorsements of token launches, fake trading signals and impersonated exchange representatives.
The speed of crypto transactions also amplifies the risk as digital asset transfers can settle irreversibly within minutes, compressing the window for detection and intervention.
According to TRM, the result is a threat environment where deception becomes industrialized, combining automation, personalization and rapid cross-platform coordination. TRM says understanding how AI enhances existing fraud tactics is essential for building stronger controls and public-private defenses before the next wave scales further.
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