"These scammers are using crypto to steal a record $17 billion from regular people, according to Chainalysis's recent report. The severity of this fraud has reached the attention of the U.S. government. On Wednesday, Jacqueline Burns Koven, the head of cyber threat intelligence at Chainalysis, spoke in front of the Senate about the increase of this criminal activity, and how the U.S. can combat it. Her testimony was titled, 'Made in China, Paid by Seniors: Stopping the Surge of International Scams.'"
"The estimated $17 billion received in crypto scams is up from about 30% from last year, according to the report. These operations have become increasingly sophisticated and include the use of AI-generated deepfakes. Crypto is an essential part of the operation because the criminals frequently use digital currencies to finance their scamming operations, such as purchasing tools like SMS phishing kits. Nefarious actors have leaned heavily on impersonation techniques, where they pose as legitimate organizations to coerce victims into paying digitally."
Chinese-backed criminal networks are responsible for widespread toll-impersonation text scams and other impersonation schemes that have stolen an estimated $17 billion in cryptocurrency, an increase of about 30% year over year. Scammers use cryptocurrency to finance operations, purchase tools like SMS phishing kits, and deploy AI-generated deepfakes to increase effectiveness. High-profile campaigns include an EZ-Pass phishing scheme traced to a Chinese-speaking group called "Darcula," which has also impersonated the USPS. Law enforcement executed a record number of crypto seizures in 2025, yet government and industry responses remain fragmented and largely reactive.
Read at Fortune
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