AI-driven crypto scams are surging, as federal investigators report billions in losses and criminals increasingly use artificial intelligence to contact victims, tailor messages, and sustain long-term deception.

A CBS News report from California and New York details a large-scale crypto fraud driven by AI, noting about $20 billion in cyber theft in 2025, with more than half in cryptocurrency.

The CBS News investigation links AI to a sharp rise in crypto fraud, with scammers crafting personalized messages and exploiting data from leaks and prior scams.

Public guidance emphasizes caution with unsolicited investment opportunities on social media or messaging apps and reminds that legitimate institutions do not require moving funds to external wallets or third-party crypto accounts to access returns.

Experts urge staying informed about evolving scam tactics and sharing knowledge to reduce vulnerability to schemes.

In a documented case, after initial small transfers the victim saw no returns, faced intimidation, and ultimately lost retirement savings, leading to Medicaid-assisted relocation to an assisted living facility on Long Island.

The victim made 17 transfers of USDT and ETH to a wallet controlled by the fraudster after being directed to a fake investment site, with withdrawals repeatedly denied, revealing the deception.

The scam used fake platforms, convincing profit visuals, and 17 transfers before withdrawal attempts failed, escalating pressure to send more funds.

Overall, 17 transfers of USDT and ETH occurred with withdrawals blocked, culminating in the loss being uncovered.

Despite the scale of the operation, law enforcement has not identified the perpetrators, who may be dispersed globally, and authorities urge the public to report tips to aid interception.

Victims are encouraged to use scam-detection tools like Bitdefender Scamio and Bitdefender Link Checker to assess suspicious messages and links.

Experts advise victims to slow down, verify requests independently with the supposed sender, and report incidents quickly to improve tracking and recovery chances.