Scams and Frauds: Tactics Criminals Employ in the Era of AI and Cryptocurrency

Scams have been around for ages—fraud is as old as human greed. What changes are the methods used.

Scammers excel at targeting vulnerable and uninformed individuals, constantly adapting to the latest technologies and trends. By 2025, that means leveraging AI, cryptocurrencies, and stolen personal information as their primary tools.

As always, the emotions of their targets—duty, fear, and hope—create opportunities for exploitation. Nowadays, “duty” often involves following directives from bosses or colleagues, which scammers can easily impersonate. “Fear” might revolve around the safety of a loved one, another figure that scammers can mimic. Lastly, “hope” frequently manifests in investment schemes or job offers that promise lucrative returns.

Scams Utilizing AI and Deepfakes

Artificial intelligence has transitioned from a niche to a cost-effective and widely accessible tool. While businesses harness AI for marketing and customer service, scammers are using the same technology to create eerily realistic fakes.

Criminal organizations are employing AI-generated audio and video to impersonate CEOs, managers, or even distressed family members. This has led to employees unknowingly transferring funds or disclosing sensitive data. In 2024 alone, there were over 105,000 deepfake incidents in the U.S., which resulted in losses exceeding US$200 million in just the first quarter of 2025. Many victims struggle to differentiate between synthetic and real voices or faces.

Additionally, scammers leverage emotional manipulation techniques, making phone calls or sending AI-generated messages that appear to be from friends or relatives needing urgent assistance. Elderly individuals are particularly vulnerable, often believing a grandchild or loved one is in peril. The Federal Trade Commission has documented the ways scammers exploit false emergencies to impersonate family members.

Cryptocurrency Fraud

Cryptocurrency remains a lawless frontier—quick, unregulated, and ripe for abuse.

Pump-and-dump schemes involve inflating cryptocurrency values through social media hype, enticing investors with promises of significant returns—this is the “pump”—and then selling off their holdings—the “dump”—leaving victims with worthless tokens.

Pig butchering combines romance scams with crypto fraud. Scammers invest time building trust over weeks or months before persuading victims to invest in phony cryptocurrency platforms. After extracting substantial funds, they vanish.

Scammers also utilize cryptocurrencies to extract money through impersonation scams and other frauds. For instance, victims may be directed to Bitcoin ATMs to deposit large sums of cash, converting it to untraceable cryptocurrency as payment for fictitious fines.

Phishing, Smishing, Tech Support, and Job Scams

Old scams never truly die; they simply evolve.

Phishing and smishing tactics have existed for years. Victims are lured into clicking on links found in emails or texts, leading to malware downloads, credential theft, or ransomware attacks. AI enhances these scams, creating unnervingly realistic lures that mimic corporate language and even video content.

Tech support scams frequently begin with pop-up alerts on computer screens warning of viruses or identity theft, urging users to call a specified number. Sometimes, these scams start with an unsolicited cold call. Once on the line with false tech support, victims are persuaded to grant remote access to their computers, allowing scammers to install malware, harvest data, demand payment, or all three.

Fake websites and listings also represent a contemporary form of deception. Fraudulent sites impersonating legitimate universities or ticket vendors trick victims into paying for non-existent admissions, concerts, or merchandise.

For example, a website falsely advertising “Southeastern Michigan University” emerged, providing information about admissions. This university does not exist; Eastern Michigan University lodged a complaint stating that the fraudulent site was copying its content to defraud unsuspecting individuals.

The surge in remote and gig work has opened new avenues for deception.

Victims are offered false job opportunities featuring promises of high salaries and flexible hours. In truth, scammers extract “placement fees” or collect sensitive personal details, such as Social Security numbers and banking information, which are later used for identity theft.

Protecting Yourself

While technology may have changed, the fundamental principles remain consistent: Never click on dubious links or download attachments from unknown sources, and input personal information only on trusted websites. Steer clear of third-party apps or links; legitimate companies have their own apps or websites.

Enable two-factor authentication wherever feasible, as it adds an extra layer of security against compromised passwords. Regularly update software to address security vulnerabilities, with most programs allowing for automatic updates or notifications for applying patches.

Keep in mind that a legitimate organization will never ask for personal information or money transfers—such requests are major red flags.

When it comes to relationships, exercising caution is essential. California has published guidelines on how individuals can avoid falling victim to pig butchering scams.

Technology has amplified age-old fraud tactics. AI has made deception almost indistinguishable from reality; cryptocurrencies facilitate anonymous theft, and the remote-work era has broadened the landscape for scams. The constant remains: Scammers exploit trust, urgency, and ignorance. Maintaining awareness and skepticism is your best line of defense.

Rahul Telang, Professor of Information Systems, Carnegie Mellon University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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