AI vs AI: How New Technologies Are Combating Sophisticated Crypto Scams

Scams make up the majority of illicit activity in the cryptocurrency ￰0￱ from the Federal Bureau of Investigation (FBI) show that ￰1￱ lost $9.3 billion to crypto scams last ￰2￱ rise of artificial intelligence (AI) has only made this ￰3￱ to blockchain analytics firm TRM Labs, there was a 456% increase in AI-facilitated scams in 2024 compared to previous years.) advances , bad actors are now able to deploy sophisticated chatbots, deepfake videos, cloned voices, and automated networks of scam tokens at a scale never seen ￰4￱ a result, crypto fraud is no longer a human-driven operation, but rather algorithmic, fast, adaptive, and increasingly convincing.

NEW: @zachxbt WARNS THAT THERE IS A FAKE HYPERLIQUID APP ON THE GOOGLE PLAY STORE ￰5￱ — DEGEN NEWS (@DegenerateNews) November 7, 2025 Scams Moving at Lightning Speed Ari Redbord, global head of policy and government affairs at TRM Labs, told Cryptonews that generative models are being used to launch thousands of scams simultaneously. “We are seeing a criminal ecosystem that is smarter, faster, and infinitely scalable,” he ￰6￱ explained that GenAI models can tune into a victim’s language, location, and digital ￰7￱ instance, he noted that in ransomware, AI is being used to select victims most likely to pay, draft ransom demands, and automate negotiation ￰8￱ social engineering, Redbord mentioned that deepfake voices and videos are being used to defraud companies and people in “executive impersonation” and “family emergency” scams.

Finally, on-chain scams involving AI tools writing scripts can move funds across hundreds of wallets within seconds, laundering at a pace no human could possibly match. AI-Powered Defenses The crypto industry is turning to AI-powered defenses to fight back against these ￰9￱ analytics firms, cybersecurity companies, exchanges, and academic researchers are now building machine-learning systems designed to detect, flag, and mitigate fraud long before victims lose ￰10￱ example, Redbord stated that artificial intelligence is built into every layer of TRM Labs’ blockchain intelligence ￰11￱ firm uses machine learning to process trillions of data points across more than 40 blockchain ￰12￱ allows TRM Labs to map wallet networks, identify typologies, and surface anomalous behavior that indicates potential illicit activity.

“These systems don’t just detect patterns—they learn ￰13￱ the data changes, so do the models, adapting to the dynamic reality of crypto markets,” Redbord ￰14￱ lets TRM Labs see what human investigators might otherwise miss—thousands of small, seemingly unrelated transactions forming the signature of a scam, laundering network, or ransomware ￰15￱ risk platform Sardine is taking a similar ￰16￱ security company was founded in 2020, a time when prominent crypto scams were just beginning to take ￰17￱ Kushnir, Sardine’s head of commercial development, told Cryptonews that the company’s AI-fraud detection consists of three layers. “Data is core to everything we ￰18￱ capture deep signals behind every user session that happens on financial platforms like crypto exchanges—like device attributes, whether apps are tampered, or how a user is behaving.

Secondly, we tap a wide network of trusted data providers for any user inputs. Finally, we use our consortium data—which may be the most important for fighting fraud—where companies can share data relating to bad actors with other companies.” Kushnir added that Sardine uses a real-time risk engine to act on each of the indicators mentioned above to combat scams as they ￰19￱ also pointed out that today, agentic AI and large language models (LLMs) are used mainly for automation and efficiency rather than real-time fraud detection. “Rather than hard-code fraud detection rules, now anyone can just type out what they want a rule to evaluate, and an AI agent will build it, test it, and deploy that rule for them if it meets their ￰20￱ AI agents can even proactively recommend rules based on emerging ￰21￱ when it comes to predicting risk, machine learning is still the gold standard,” he said.