Social Engineering Dominates Crypto Crime: 65% of Cases Driven by Manipulation, AMLBot Finds

The pervasive nature of social engineering attacks has emerged as a defining characteristic of cryptocurrency crime in 2025. According to a recent investigation by AMLBot, 65% of cryptocurrency-related criminal cases examined were driven by social engineering tactics, highlighting the need for new approaches to strengthen security within the cryptocurrency ecosystem. Beyond exploring technical vulnerabilities, there's an urgent need to develop strategies that protect investors and users based on an understanding of human psychology.

The Reign of Social Engineering: A New Reality in Cryptocurrency Crime

Implications of the AMLBot Investigation

According to a recent report by Cointelegraph, AMLBot's 2025 investigation revealed that 65% of cryptocurrency crimes were driven by social engineering attacks. This demonstrates the effectiveness of criminal tactics that exploit human psychological vulnerabilities, rather than simply relying on technical hacking or exploiting vulnerabilities. This finding underscores the need to re-evaluate security strategies within the cryptocurrency market.

What is Social Engineering?

Social engineering is an attack technique that circumvents technical security systems by tricking people into revealing information or performing specific actions. It manifests in various forms, including phishing, smishing, and fake investment proposals, with attackers often impersonating trusted institutions or individuals to deceive victims. The anonymity and decentralization of cryptocurrencies further facilitate these attacks.

Diverse Forms of Social Engineering in Cryptocurrency Crime

Phishing and Smishing Attacks

Phishing involves luring users to fake websites via email or text messages to steal personal information or cryptocurrency wallet details. Smishing is a phishing attack using text messages, often enticing users with false cryptocurrency investment opportunities.

Fake Investment Proposals and Pump and Dump Schemes

Attackers impersonate cryptocurrency investment experts or offer fake investment proposals guaranteeing high returns to steal users' funds. Pump and dump schemes, where the price of a specific cryptocurrency is artificially inflated before being sold off for profit, also frequently utilize social engineering techniques.

Insider Information Leaks and Extortion

Cases have emerged where insider information from cryptocurrency exchanges or projects is stolen and used for criminal purposes, or personal information is collected for extortion. These attacks exploit the victim's trust, leading to severe harm.

Strengthening Security for Cryptocurrency Investors

Be Cautious of Suspicious Links and Attachments

Never click on suspicious links or attachments received via email or text messages. Exercise extra caution with links related to cryptocurrency investment offers or events.

Enable Two-Factor Authentication

Enable two-factor authentication on cryptocurrency exchanges and wallets to strengthen account security. Two-factor authentication requires an additional authentication step beyond the password, reducing the risk of hacking.

Information Security Education and Awareness

Cryptocurrency investors should receive education on the types and prevention methods of social engineering attacks and maintain constant vigilance. To analyze the ripple effects of global economic issues on asset markets from multiple angles, leverage FireMarkets' expert analysis columns and diverse asset charting tools.