Crypto Industry Fights Back Against $17 Billion Scam Economy

The crypto industry has seen a significant shift in the types of attacks it faces, with a growing trend towards social engineering.

Data from Chainalysis's 2026 Crypto Crime Report shows that impersonation scams saw a massive 1,400% year-over-year growth in 2025, and attackers are using generative AI to create sophisticated fakes that can slip past even experienced users.

Victims are paying a steeper price per incident, with the average scam payment rising 253% to $2,764. This surge suggests that hardware wallets and exchange protocols have become hard targets, yet the user remains the soft spot.