The use of cryptocurrency in the United States has seen significant growth recently, although issues surrounding fraud and trust persist. Research indicates that approximately one-third of Americans have personally experienced or know someone who has been victimized by scams related to cryptocurrencies.
While 36% of U.S. adults have interacted with cryptocurrency within the past year, younger demographics are leading this trend yet facing a heightened risk of scams. Survey results reveal that almost half of Gen Z (46%) and Millennials (49%) have encountered fraud directly or indirectly.
Common fraud tactics highlighted include social engineering scams, Ponzi schemes, and fake giveaways, each reported by roughly 30% of survey participants. Phishing, a method where fraudulent communications such as websites and emails are used to extract personal information, targets crucial data like passwords and private cryptocurrency keys. Other prevalent scams included impersonation, fake airdrops, wallet draining, and rug pulls. Additionally, synthetic identity fraud, often utilizing deepfake technology or forged documentation, impacted 35% of respondents, with nearly one in five targeted directly.
Recent data demonstrates a stark rise in synthetic identity document fraud, surging by over 300% in early 2025 compared to the prior year, while deepfake-related fraudulent activities saw an alarming 700% increase in the same timeframe.
The financial consequences of such scams are considerable. Victims reported average losses of about $3,300 from their most severe incidents. When questioned about funding recovery responsibility, opinions varied, with 33% asserting that platforms should bear this burden, whereas 20% believed the individuals should take the loss themselves.
Despite the increasing participation in cryptocurrency markets, trust in these platforms remains significantly lower than in traditional financial institutions. Only 26% of individuals expressed higher confidence in cryptocurrency services, while a majority (54%) indicated less trust, with 41% stating they have much less confidence.
Support for enhanced regulatory measures is prevalent among respondents, with three out of five advocating for government oversight of cryptocurrency platforms. Proposed legislation like the GENIUS Act and the Clarity for Payment Stablecoins Act aims to establish clearer guidelines for stablecoin issuance and bolster consumer protection against fraud. These regulatory proposals garnered the strongest backing from individuals with previous scam experiences.
Public concerns regarding fraud intertwined with artificial intelligence have emerged as well. Approximately 69% of survey participants believe that firms developing generative AI should be held accountable if their creations are misused for fraudulent purposes.
Overall, while cryptocurrency usage grows among Americans, the persistent issues of fraud and the demand for greater accountability and oversight reflect the community’s cautious approach. The focus remains on balancing innovation in the digital asset space with the necessary safeguards to protect users from evolving threats.