Crypto Security Shifts from Code to Deception as AI-Driven Scams Surge

AI-powered scams and identity impersonation have become major threats in the crypto space, with Chainalysis reporting at least $14 billion in illicit on-chain funds in 2025. AI-linked scams average $3.2 million per incident, compared to $719,000 for non-AI scams. Security experts note that attackers are increasingly targeting human elements, credentials, and governance systems rather than smart contract code. Binance Chief Security Officer Jimmy Su highlighted that access control failures accounted for two-thirds of DeFi losses in April 2026. As AI agents b