Key Highlights:
- Crypto scams and hacks have hit record levels in 2025.
- Phishing, fake apps, and social engineering were and are the biggest threats.
- Strong security habits can greatly reduce security risks.
Cryptocurrency scams, hacks and frauds are on the rise. In 2025, it has been reported that more than $2.17 billion have been stolen through major thefts, which includes Bybit exchange’s $1.5 billion hack. But while these thefts grab headlines, blockchain security data shows the overall scam landscape is way bigger than this. According to Chainlysis, crypto scams on blockchain have received at $14 billion in illicit inflows in 2025.
To counter these threats, Cyvers, a well-known Web3 security firm, reports that its AI-driven system has prevented around $500 million in potential customer losses in 2025. The firm detected malicious activity and stopped exploits, fishing drains and fraud transfers before the funds vanished.
As the crypto space moves forward, attackers bring in new methods that are too sophisticated and it becomes difficult to protect digital assets.
Rising Crypto Threats in 2025
From the above data it is clear that the crypto crime rate reached levels in 2025, and the thefts crossed $2.17 billion by mid year alone. This number surpassed the total losses that were seen back in 2024.
In February 2025, Bybit exchange was hit with one of the biggest hacks where hackers that were linked to North Korea exploited a flaw in a multi-signature wallet and stole $1.5 billion worth of Ethereum.
Another major case involved a Coinbase customer support breach where insiders were bribed to access sensitive data and this led to losses of about $180 million and $400 million.
Security reports also show that wallet compromises and phishing attacks remain the most common ways attackers steal funds. Large-scale scams, which include “pig butchering” schemes, have defrauded victims of billions worldwide.
All of these incidents have made authorities to act more aggressively as highlighted by the Department of Justice which seized $15 billion linked to the Prince Group scam network.
Common Scams and Red Flags
Scammers usually make use of fake websites and apps that look very similar to the actual website or the app. With this similar looking app or website, these scammers trick users into revealing their private keys or recovery phrases.
Common tactics also include pump-and-dump schemes where fraudsters create a great amount of hype for the token on social media before selling and then crashing the price.
McAfee also talks and highlights several warning signs to watch out for, such as guaranteed high returns, fake celebrity endorsements created using AI or deepfakes, pressure to act quickly, and requests for private keys or upfront fees.
The FBI has also warned about cryptocurrency confidence scams, where criminals build trust over time and then disappear along with the victim’s funds, which includes cases that led to major forfeitures worth hundreds of millions of dollars.
Security firms like Kaspersky have reported cases where malicious browser extensions, such as fake Chrome add-ons that secretly change transactions. Hacks that are larger usually target weakness of the exchange, which includes poor multi-signature security or insider involvement.
At the same time, social engineering scams like romance scams, fake ICOs offering early-bird discounts, ransomware attacks, and cloud mining frauds continue to drain crypto assets by exploiting trust rather than technology.
Best Practices for Safeguarding Assets
In order to protect crypto assets, user should start by using hardware wallets for cold storage, which will keep your private keys offline and away from online attacks.
One should always enable multi-factor authentication (MFA) on exchanges, wallets, and email accounts and should double check website URLs before connecting their wallet so that fake platforms can be avoided.
Security firm experts like that at Kaspersky suggest that one should send small test transactions first, stay away from unsolicited investment offers and one should always review the project’s whitepaper and background to make sure that the project is legitimate.
Basic security steps go a long way. One should never share their private keys or seed phrases, and one should always keep in mind that legitimate platforms will never ask for such information from the users.
One should use reliable antivirus and security tools, such as those that are capable of detecting phishing attempts and AI-driven deepfake scams, this adds another layer of protection to the whole thing.
Also, searching the project’s name along with the word ‘scam’ and checking its regulatory status can also reveal warning signs if there are any.
For stronger protection, cybersecurity groups advise regular security audits, ask users to keep their software updated, and use firewalls, VPNs and network segmentation to block unauthorized access.
Moreover, users should make use of unique passwords for every account and they should be actively looking out for the wallets and exchange accounts for any unusual activity. These small habits can help reduce risk of falling victim to crypto scams or hacks.
Staying Ahead of Evolving Threats
As scams get more and more sophisticated, it is important to take proactive steps that include steps such as regular penetration testing and employee security training as this can help prevent breaches that usually cost a lot to the companies. While illicit crypto activity still makes up less than 1% of total transactions, the actual value involved is increasing, which makes the threat more serious.
With the rise of AI-powered scams and state-sponsored hacks, constant vigilance is something that is very important. Adopting zero trust security models and securely backing up private keys can also reduce risks.
Final Thoughts
As the crypto world brings in opportunities, it also brings risks. As scams and hacks grow more and more advanced, staying alert and following basic security practices is important and in users’ hands.
Simple habits like protecting keys, verifying sources and staying informed goes a long way as it will keep users’ digital assets safe.
Also Read: RWA vs DeFi; Here’s a Look at Which Will Yield More in 2026
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