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Cryptocurrency users in SA have been warned that the growing number of cryptocurrency scams, including the use of artificial intelligence and impersonation, is putting investors and ordinary users at greater risk.
The warning comes as the latest Chainalysis Crypto Crime Report reveals that cryptocurrency scams netted at least R230bn in 2025, with the figure expected to rise to more than R280bn as more illicit wallets are identified.
— Chainalysis report
Chainalysis is a blockchain data platform that uses advanced software to trace cryptocurrency transactions, helping law enforcement and financial institutions track down cybercriminals and combat financial crime.
The report shows how criminal networks are increasingly combining technology, social engineering and sophisticated money-laundering methods to target victims.
The report found that the average scam payment increased by 253% between 2024 and 2025, rising from the equivalent of about R13,000 to R47,000. Impersonation scams were among the fastest-growing forms of fraud, increasing by more than 1,400% year-on-year.
Chainalysis reported that Sub-Saharan Africa received more than R3.4 trillion in on-chain value between July 2024 and June 2025, representing growth of about 52% and making it the third-fastest-growing crypto region globally.
SA is among the countries helping drive the region’s growing institutional crypto activity, making the increasing sophistication of scams a concern for local consumers and businesses.
The latest report shows that scammers are no longer relying solely on generic investment promises or poorly written messages.
“We’re seeing increasing convergence across scam types as fraudsters leverage AI, sophisticated SMS phishing services, and complex money laundering networks to target victims more effectively than ever before,” the report states.
“Impersonation scams have emerged as a particularly concerning trend, growing more than 1400% compared to 2024.”
For South Africans, the warning is particularly relevant as cryptocurrency and digital financial platforms become increasingly accessible, making it easier for criminals to reach potential victims across borders.
The report warns that AI is likely to make these operations even more difficult to detect.
“We are moving toward a future in which virtually all scams will incorporate AI into their operations to some degree,” it states.
The report found that AI-enabled scams linked to AI vendors generated an average of about R54m, compared with roughly R12m for scams without such links, making them 4.5 times more profitable.
For South Africans, this could mean receiving a seemingly legitimate WhatsApp message, SMS, social-media communication or investment opportunity that has been specifically designed to appear trustworthy.
The danger is further amplified by the availability of cheap, ready-made criminal tools.
Chainalysis found that phishing kits, fake websites and other scam infrastructure can be bought and used by criminals without them needing advanced technical skills.
“Human trust remains among the most exploitable vulnerabilities in security infrastructures. Modern scam networks have professionalised, integrating human trafficking, money laundering, and crypto-enabled fraud into a single, industrialised business model,” the report states.
However, the report cautions against viewing cryptocurrency itself as inherently criminal.
“While the overall percentage of illicit activity remains small relative to legitimate crypto usage, the stakes have never been higher for maintaining the integrity and security of the cryptocurrency ecosystem,” the report notes.
Sowetan
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