Impersonation Scams on the Rise: What You Need to Know
In 2025, impersonation scams surged by an alarming 1,400%, resulting in staggering losses across the crypto industry. According to a recent report by blockchain analytics firm Chainalysis, these scams have become one of the most troubling trends in online fraud, with total crypto-related scam losses estimated to exceed $17 billion.
So, what are impersonation scams, and why are they becoming such a problem? Typically, these scams involve fraudsters posing as trusted entities, such as well-known companies, government organizations, or even individuals, to deceive victims into transferring funds or revealing sensitive personal information. The rise of artificial intelligence (AI) has only made it easier for scammers to operate on a larger scale and leverage more sophisticated social engineering tactics.
Breaking Down the Numbers
2025 was officially the worst year on record for crypto crimes. Chainalysis reported receiving at least $14 billion in funds directly linked to scams. This figure is expected to keep climbing as more fraudulent wallet addresses come to light, with projections estimating a total loss of $17 billion. Comparatively, this marks a significant increase from the $9.9 billion reported in 2024.
Another concerning trend is the increased value per scam transaction. On average, victims lost $2,764 in 2025, compared to just $782 in 2024, a year-over-year increase of 253%.
The Role of Artificial Intelligence in Modern Scams
The integration of AI into scam operations is proving to be a game-changer for cybercriminals. According to Chainalysis, scams utilizing AI tools demonstrated higher financial success and operational efficiency compared to traditional scams. For instance, AI-enhanced operations raked in an average of $3.2 million per scam—significantly higher than the $719,000 earned by scams that didn’t incorporate AI. Additionally, AI-driven scams handled more victims per day, with a median daily intake of $4,838, compared to $518 for non-AI scams.
AI is enabling scammers to craft more convincing messages, manage victim interactions on a larger scale, and automate key aspects of their operations. Fraud prevention experts warn that nearly all future scam operations are likely to incorporate AI in some capacity.
Real-World Examples: The Danger of Impersonation Schemes
Two prominent cases exemplify how impersonation scams can target a wide range of victims:
- E-ZPass Phishing Scam: Scammers posed as government toll services, tricking unsuspecting victims into paying fraudulent fees through SMS phishing campaigns.
- Coinbase Support Impersonation: Fraudsters impersonated Coinbase customer service representatives, stealing nearly $16 million from victims.
These examples highlight how impersonators exploit recognizable brands and services to gain the trust of potential victims.
How to Stay Protected
Protecting yourself from scams requires vigilance and awareness. Here are some tips to safeguard your finances and personal information:
- Verify the Source: Always double-check communication from companies or government agencies. Call their official customer service hotline to confirm authenticity.
- Utilize Security Tools: Invest in tools like Norton 360, which offers identity theft protection and real-time threat detection for online scams.
- Enable Two-Factor Authentication (2FA): Securing your crypto wallet and accounts with 2FA adds an extra layer of protection against unauthorized access.
- Beware of Unsolicited Messages: Avoid clicking links or downloading attachments from suspicious emails, SMS messages, or social media profiles.
Looking Ahead
As technology continues to advance, scams are evolving in complexity and scale. Experts anticipate that many cybercriminal operations will become increasingly reliant on AI to enhance their tactics. Staying informed about these developments and adopting proactive security measures is critical to reducing your risk of becoming a victim.
For detailed reports and tools to protect yourself and your finances, visit software providers like Norton that offer comprehensive solutions to fight online fraud and impersonation scams.
