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AI-Driven Crypto Scams Surge to $14 B in 2025, Mercuryo Warns of Human-Centric Threats
Mercuryo’s Chief Customer Officer, Ashna Vaghela, told CCN on 18 July 2026 that artificial‑intelligence (AI) tools are enabling fraudsters to create synthetic identities, clone brand logos and produce real‑time deep‑fake communications faster than current security systems can respond. The warning comes after Chainalysis reported that crypto scams received at least $14 billion on‑chain in 2025, with the average payment to scammers rising 253 % from $782 in 2024 to $2,764 in 2025.
Vaghela said the shift is toward personalized attacks that manipulate users into approving transactions themselves. Unlike traditional cyberattacks that target software vulnerabilities, the new scams exploit human behaviour. “These human‑centric threats evolve faster than software patch cycles because they exploit behavioural vulnerabilities rather than code bugs,” she explained.
The rise in AI‑driven fraud coincides with a sharp decline in Bitcoin’s price. After reaching an all‑time high of $126,198 in October 2025, Bitcoin fell below $60,000 and hit a 21‑month low of $58,100 in late June. Chainalysis noted that while macro‑economic pressures contributed to the downturn, a series of high‑profile hacks – including the $292 million drain from Kelp DAO and a $285 million loss from Solana‑based Drift Protocol – reinforced negative sentiment.
Vaghela highlighted that payment providers using legacy fraud‑detection tools risk failing to identify synthetic identities. “Financial infrastructure providers run the risk of failing silently if they rely on legacy fraud tools that cannot detect real‑time synthetic identity threats,” she said. She called for security measures that are invisible to consumers, embedding risk controls into transaction flows rather than requiring repeated verification steps.
Mercuryo has been working on a solution that could reduce friction for crypto users. The company is providing onboarding and know‑your‑customer infrastructure for Mastercard’s Crypto Credential service, which replaces lengthy blockchain addresses with verified, readable aliases. Vaghela said pairing this identity layer with biometric, card‑linked mobile checkouts could make the user experience comparable to a traditional neobank.
The industry’s reliance on education alone has been insufficient, Vaghela noted. “Historically, the industry has leaned too heavily on the idea that we can simply educate our way out of risk,” she said. “It is a losing strategy if it is treated as a standalone defense against sophisticated cybercriminals.”
Regulatory clarity is also seen as essential. Vaghela rejected the argument that stronger regulation would stifle innovation. “Regulation is not an obstacle,” she said. “Clear, risk‑based statutory guidance is an absolute prerequisite for long‑term innovation and mass adoption.” She cited the federal market‑structure and stablecoin frameworks advancing through the U.S. Senate as examples of how clear rules can inject confidence.
The fragmented regulatory landscape, she added, makes it harder for companies to develop products that operate across multiple jurisdictions. “When policymakers establish clear rules, like the federal market‑structure and stablecoin frameworks advancing through the U.S. Senate, it injects immense confidence into the market,” she said.
The growing scale of crypto fraud may also indirectly weigh on Bitcoin by weakening investor confidence. While scams alone do not determine Bitcoin’s direction, high‑profile thefts and enforcement actions can reinforce negative sentiment. Chainalysis’ 2025 report shows that crypto scams received at least $14 billion on‑chain, up from $9.9 billion in 2024.
In addition to the financial losses, the rise in AI‑powered phishing and deep‑fake attacks has heightened concerns about the security of digital asset platforms. The industry is now focusing on embedding automated micro‑checks that can detect deepfakes or synthetic identities at the fiat‑to‑crypto gateway without disrupting the one‑tap payment experience.
The current situation underscores the need for a multi‑layered approach that combines advanced AI‑driven detection, user‑friendly identity verification, and clear regulatory frameworks. As the crypto market continues to evolve, stakeholders must balance innovation with robust security to maintain trust among both retail and institutional participants.
The next steps for the industry include the rollout of Mercuryo’s Crypto Credential service, the continued development of AI‑based fraud detection tools, and the passage of comprehensive regulatory guidance in the United States and other major jurisdictions. The outcomes of these initiatives will shape the resilience of crypto payments and the broader digital asset ecosystem in the coming months.
Vaghela said the shift is toward personalized attacks that manipulate users into approving transactions themselves. Unlike traditional cyberattacks that target software vulnerabilities, the new scams exploit human behaviour. “These human‑centric threats evolve faster than software patch cycles because they exploit behavioural vulnerabilities rather than code bugs,” she explained.
The rise in AI‑driven fraud coincides with a sharp decline in Bitcoin’s price. After reaching an all‑time high of $126,198 in October 2025, Bitcoin fell below $60,000 and hit a 21‑month low of $58,100 in late June. Chainalysis noted that while macro‑economic pressures contributed to the downturn, a series of high‑profile hacks – including the $292 million drain from Kelp DAO and a $285 million loss from Solana‑based Drift Protocol – reinforced negative sentiment.
Vaghela highlighted that payment providers using legacy fraud‑detection tools risk failing to identify synthetic identities. “Financial infrastructure providers run the risk of failing silently if they rely on legacy fraud tools that cannot detect real‑time synthetic identity threats,” she said. She called for security measures that are invisible to consumers, embedding risk controls into transaction flows rather than requiring repeated verification steps.
Mercuryo has been working on a solution that could reduce friction for crypto users. The company is providing onboarding and know‑your‑customer infrastructure for Mastercard’s Crypto Credential service, which replaces lengthy blockchain addresses with verified, readable aliases. Vaghela said pairing this identity layer with biometric, card‑linked mobile checkouts could make the user experience comparable to a traditional neobank.
The industry’s reliance on education alone has been insufficient, Vaghela noted. “Historically, the industry has leaned too heavily on the idea that we can simply educate our way out of risk,” she said. “It is a losing strategy if it is treated as a standalone defense against sophisticated cybercriminals.”
Regulatory clarity is also seen as essential. Vaghela rejected the argument that stronger regulation would stifle innovation. “Regulation is not an obstacle,” she said. “Clear, risk‑based statutory guidance is an absolute prerequisite for long‑term innovation and mass adoption.” She cited the federal market‑structure and stablecoin frameworks advancing through the U.S. Senate as examples of how clear rules can inject confidence.
The fragmented regulatory landscape, she added, makes it harder for companies to develop products that operate across multiple jurisdictions. “When policymakers establish clear rules, like the federal market‑structure and stablecoin frameworks advancing through the U.S. Senate, it injects immense confidence into the market,” she said.
The growing scale of crypto fraud may also indirectly weigh on Bitcoin by weakening investor confidence. While scams alone do not determine Bitcoin’s direction, high‑profile thefts and enforcement actions can reinforce negative sentiment. Chainalysis’ 2025 report shows that crypto scams received at least $14 billion on‑chain, up from $9.9 billion in 2024.
In addition to the financial losses, the rise in AI‑powered phishing and deep‑fake attacks has heightened concerns about the security of digital asset platforms. The industry is now focusing on embedding automated micro‑checks that can detect deepfakes or synthetic identities at the fiat‑to‑crypto gateway without disrupting the one‑tap payment experience.
The current situation underscores the need for a multi‑layered approach that combines advanced AI‑driven detection, user‑friendly identity verification, and clear regulatory frameworks. As the crypto market continues to evolve, stakeholders must balance innovation with robust security to maintain trust among both retail and institutional participants.
The next steps for the industry include the rollout of Mercuryo’s Crypto Credential service, the continued development of AI‑based fraud detection tools, and the passage of comprehensive regulatory guidance in the United States and other major jurisdictions. The outcomes of these initiatives will shape the resilience of crypto payments and the broader digital asset ecosystem in the coming months.
