The use of cryptocurrency in the United States has become increasingly popular over the past year, yet fears surrounding fraud and trust remain prevalent. Recent findings indicate that approximately one-third of American adults have either fallen victim to or are acquainted with someone impacted by scams related to cryptocurrency.
A survey revealed that 36% of U.S. adults engaged with cryptocurrencies during the last year, with younger demographics, specifically Gen Z and Millennials, leading this trend. Alarmingly, nearly half of these younger groups—46% of Gen Z and 49% of Millennials—reported direct or indirect experiences with fraud.
Common fraudulent schemes reported include social engineering, Ponzi schemes, and bogus giveaways, each identified by about 30% of participants. Phishing, a cyber-attack method where deceptive websites, emails, and texts are used to steal personal information like passwords and cryptocurrency keys, poses significant risks. Attackers often masquerade as trustworthy entities, including government organizations, to extract sensitive data. Additionally, a range of scams such as impersonation, fake airdrops, draining of wallets, and rug pulls have been consistently reported. The rise of synthetic identity fraud, often linked to artificial intelligence-generated deepfakes or forged documents, affected 35% of participants, with close to 20% being personally targeted.
Internal statistics indicate that fraudulent activities related to synthetic identity documents in the U.S. have surged by more than 300% in the first quarter of 2025 compared to the same quarter in the previous year. Furthermore, fraud tied to deepfakes has seen an alarming increase of 700% during the same period.
The financial consequences of online scams have been significant, with the average loss from the most severe incidents estimated to be around $3,300. When respondents were asked about responsibility for fund recovery, 33% believed that platforms should shoulder the financial burden, while 20% felt that affected individuals should bear the losses.
Despite the growing interest in cryptocurrencies, trust in these platforms remains considerably lower than in traditional financial institutions. Only 26% of survey participants expressed a higher level of confidence in cryptocurrency services, while 54% stated that their trust has diminished, with 41% indicating a significant decline.
Many individuals showed support for more stringent regulatory measures. Around 60% of those surveyed favored government oversight of cryptocurrency platforms. This includes proposed legislation aimed at establishing clear guidelines for stablecoin issuance and enhancing consumer safeguards against fraud. Support for these regulatory initiatives was notably strong among those who had encountered scams themselves.
Concerns regarding fraud involving artificial intelligence also surfaced, capturing public attention. Approximately 69% of respondents agreed that organizations developing generative AI should face accountability if their technology is misappropriated for fraudulent activities. The survey, which encompassed 2,000 U.S. adults, was conducted during the first week of September this year.
In summary, while cryptocurrency usage in the U.S. has experienced notable growth, it is accompanied by serious concerns regarding fraud and the need for trustworthiness in these platforms. The pressing need for regulations and accountability is underscored by the widespread incidence of various fraudulent activities targeting users of digital currency.