Scammers increasingly turned to impersonation schemes to steal cryptocurrency from unsuspecting users last year, with reported cases surging 1,400% year over year, according to blockchain analytics firm Chainalysis.
Impersonation scams typically involve fraudsters posing as trusted individuals or organizations to deceive victims into handing over crypto, passwords, account access, or other sensitive information.
In a crypto crime report released Tuesday, Chainalysis said scammers are blending multiple techniques within a single operation.
“Many pig butchering and investment scams now incorporate elements of impersonation, social engineering, and even technical or wallet-focused attacks,” the firm said.
The average amount stolen per impersonation scam also rose by more than 600%, a development Chainalysis described as a “concerning trend.”
One of the most high-profile impersonation cases in 2025 involved scammers posing as crypto exchange Coinbase, stealing nearly $16 million from victims.
In December, the Brooklyn District Attorney’s Office indicted a man alleged to be behind the scheme. He has pleaded not guilty to charges including grand larceny, money laundering, and conspiracy to defraud. A trial date has not yet been set.
AI Drives “Industrialization of Fraud”
Artificial intelligence is making scams more effective and fueling what Chainalysis calls the “industrialization of fraud,” as scammers leverage sophisticated tools from specialized vendors to target more victims.
Chainalysis found that AI-powered scams were 4.5 times more profitable and ran more efficiently, generating higher daily revenue and handling increased transaction volumes.
“These metrics point to greater operational efficiency and a potentially wider victim reach,” the firm said. “The higher transaction volume shows that AI enables scammers to target and manage more victims simultaneously, reflecting the industrialization of fraud we’ve been tracking.”
“In contrast, the increased scam volume suggests that AI is likewise making scams more persuasive.”
No “Silver Bullets” for Preventing Crypto Scams
The rise in crypto scams has prompted greater law enforcement activity in 2025, but Chainalysis emphasized that prevention remains key. The firm urged authorities to prioritize advanced detection tools and expand the use of real-time fraud and mule detection systems in 2026.
They also recommended allocating more resources to strengthen cross-border law enforcement coordination and provide support to institutions and enforcement agencies in jurisdictions with limited capacity.
“There are no silver bullets to tackling such entrenched, industrial-scale scamming activity and to be effective, a multi-pronged response is required.”
“As we move into 2026, we expect further convergence of scam methods, with fraudsters increasingly combining multiple tactics and technologies,” Chainalysis said.
How to Counter Impersonation Scams
Crypto security experts told last year that one of the most effective ways to combat social engineering scams is to reduce human trust points—for example, by automating defenses.
Experts also advise never sharing sensitive information such as passwords or key phrases, since legitimate companies will never request them. Users should treat every interaction or unsolicited message with caution and always verify authenticity before responding.
