Crypto Scams Surge as Markets Hit Record Highs

Cryptocurrency markets continue to reach new all-time highs, sparking renewed investor enthusiasm. However, this market success has triggered a sharp increase in crypto scams, with fraudsters intensifying attacks on platforms like XRP.

Brad Garlinghouse, CEO of Ripple, warned on X (formerly Twitter), "Like clockwork, with success and market rallies, scammers ramp up their attacks on the crypto community — PLEASE BEWARE of the latest scam targeting the XRP family on YouTube and impersonating Ripple’s official account. We will keep reporting these — please do the same. If it sounds too good to be true, it probably is".

Surge in Crypto Scams Mirrors Market Rally

The explosive growth in cryptocurrency valuations has made investors attractive targets for scammers. According to CertiK's report, crypto scams and hacks have cost investors nearly $2.5 billion in the first half of 2025 alone. Wallet compromises led losses, accounting for over $1.7 billion stolen, with phishing attacks responsible for an additional $410 million.

Ripple also issued a public service announcement highlighting an uptick in XRP scams specifically on YouTube. Scammers are increasingly stealing and hijacking accounts to impersonate Ripple’s official handle (@Ripple) to deceive users. Their warning was clear: “Ripple or our executives will NEVER ask you to send us XRP. Stay vigilant”.

This surge in scams coincides with reports that 2025 is on track to surpass the previous years’ record thefts. Chainalysis notes over $2.17 billion stolen from cryptocurrency services year-to-date, with the largest hack — a $1.5 billion exploit targeting the Bybit exchange — responsible for most of this loss.

Sophistication and Scale of Attacks Increase

Scammers have become more sophisticated, employing techniques such as deepfake impersonations, credential stuffing, and advanced phishing campaigns enhanced by AI tools. Criminal groups target both service platforms and individual wallets, the latter now accounting for about 23% of all stolen funds.

Warnings emphasize that during periods of bullish market activity, like now, bad actors exploit investor FOMO (fear of missing out) to accelerate their operations. As cybersecurity expert Eva Velasquez explained, “Scammers love to exploit big events. They create urgency and confusion to steal your money”.

The crypto ecosystem’s rapid growth combined with low barriers for cybercriminals has made scams a prevalent form of illicit activity. Elliptic’s 2025 report estimates that scam losses globally have now surpassed $1 trillion over recent years, fueled by evolving tactics like address poisoning and fake donation campaigns.

As exchanges and crypto projects ramp up defenses, investors are urged to remain cautious. Using cold wallets, double-checking official sources, and being wary of unsolicited offers remain critical safeguards against growing threats.