AI-Powered Crypto Scams Are Exploding—Here’s Why Investors Should Be Alarmed - BitGalactic News

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🚀 AI-Powered Crypto Scams Are Exploding—Here’s Why Investors Should Be Alarmed - BitGalactic News
The rise of artificial intelligence is revolutionizing industries worldwide, but it’s also supercharging cybercrime—particularly in the crypto space. Blockchain analytics firm Chainalysis has sounded the alarm on the exponential growth of AI-driven crypto scams, warning that this technology is making it easier than ever for scammers to deceive investors and steal their funds.

AI is Fueling a New Wave of Crypto Fraud
According to Chainalysis’ 2025 Crypto Crime Report, revenue from AI-powered scam services has surged by an astonishing 1,900% since 2021. These tools enable criminals to create hyper-realistic fake identities, manipulate victims into fraudulent investments, and impersonate trusted figures with near-perfect accuracy.

Last year alone, vendors selling AI scam software generated $18 million by offering deepfake and voice-cloning services that aid in fraud, according to Jacqueline Burns Koven, Head of Cyber Threat Intelligence at Chainalysis.

Meanwhile, excitement around AI-driven cryptocurrencies continues to surge. With AI-linked crypto assets now valued at over $28 billion, the intersection of blockchain and artificial intelligence has never been more lucrative—for both legitimate investors and cybercriminals alike.

The Dark Side of AI: Illicit Marketplaces and North Korean Hackers
Chainalysis has identified underground marketplaces, such as Huione Guarantee, as hotspots for AI-powered scam software. These platforms host numerous vendors offering AI-driven deception tools, including face-changing services that sell for as little as $200 worth of crypto.

BitGalactic’s analysis highlights how these illicit tools are being weaponized by bad actors, including North Korean cyber operatives. The UN Security Council has reported that over 4,000 North Korean IT workers have infiltrated Western tech companies by using AI-generated fake identities. Once inside, they not only earn illicit wages but also deploy malware and siphon funds from internal systems.

Taylor Monahan, a lead security researcher at MetaMask, recently cautioned that a staggering 50% of job applicants in the tech sector could be fraudulent, relying on AI tools to pass identity checks. This escalating game of cat-and-mouse between security teams and AI-enabled fraudsters is making it increasingly difficult to detect deception.
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