Hi All
Whilst doing some research on AI-assisted fraud on crypto scams. Verified accounts are being compromised, the scams are not just bypassing KYC (Know Your Customer); they are using fully verified legitimate accounts, by creating synthetic identities that pass verification, impersonate real users convincingly and with low cost scaled operations.
Traditional defenses are failing - identity-based verification solutions are not catching these attacks because the accounts are legitimately verified. Deloitte's Center for Financial Services estimates that generative AI and deepfakes will cost the US economy $40 billion by 2027. 85% of digital asset scams involve verified accounts.
Source: Chainalysis is the leading blockchain analytics firm used by government agencies, exchanges, and financial institutions worldwide.
https://www.chainalysis.com/wp-content/uploads/2025/03/the-2025-crypto-crime-report-release.pdf
The threat is real and documented:
- Source: Chainalysis (acquired $150M fraud detection technology to make this finding)
- The problem: GenAI enables fraudsters to create identities that pass KYC verification
- The impact: $9.9 billion in crypto scam revenue in 2024, projected to grow in 2025
- The projection: $40 billion in US economic losses by 2027 from GenAI fraud (Deloitte)
This validates the urgency in your source documents about the need for quantum-resistant identity systems combined with advanced AI-powered fraud detection. Traditional identity verification is being systematically defeated by AI-enhanced fraud.
Welcome to 2026 folks!
Regards
Caute_Cautim
