Crypto Fraud Cost Users More than Hacks in 2025
A Costly Shift ⚠️Crypto crime is changing fast, and the numbers from 2025 are hard to ignore. Fraud, not hacks, is now the biggest threat to users and platforms alike. Read on to see what’s driving this surge and why it matters to everyday crypto users.
30-Second TL;DR
- Crypto fraud losses hit $15.8 billion in 2025, far exceeding hack-related losses
- Social engineering scams are now the most common attack method
- Users, including crypto casino players, need stronger self-protection habits
Crypto fraud has officially overtaken hacks as the biggest source of losses in the digital asset space. According to a recent report highlighted by Cyvers, total crypto fraud losses reached $15.8 billion in 2025, dwarfing the funds lost to technical hacks and protocol exploits.
This shift marks a major change in how criminals target crypto users. Instead of breaking code, bad actors are increasingly exploiting people.
Data from the 2025 Annual Security Report by Cyvers shows that fraud now accounts for the majority of illicit crypto activity. The most common tactics include phishing, fake investment schemes, wallet approval scams, and impersonation attacks. These methods rely on social engineering, which means tricking users into giving up access voluntarily.
One of the biggest drivers behind the surge is how easy these scams are to scale. Fraudsters no longer need advanced technical skills. Many attacks use cloned websites, fake customer support accounts, or malicious links shared on social media and messaging apps. Once a victim signs a transaction or shares private credentials, the funds are usually gone for good.
Another key factor is speed. Cyvers’ report notes that fraudulent transactions often move funds across multiple wallets and chains within minutes. This makes recovery extremely difficult, even when platforms detect the issue quickly.
For everyday crypto users, this trend is especially concerning. While hacks tend to affect platforms directly, fraud hits individuals. This includes traders, NFT buyers, and crypto casino players who regularly connect wallets to third-party sites.
Is there a risk to crypto casinos?
Crypto gambling platforms, in particular, operate in a fast-paced environment where users expect instant deposits and withdrawals. That convenience can also create risk. Fake casino sites, bonus scams, and spoofed wallet prompts are becoming more common. In many cases, the scam looks legitimate until it’s too late.
The reports make one thing clear: security is no longer just about smart contracts and audits. User awareness now plays a huge role. Simple habits such as double-checking URLs, avoiding unsolicited messages, and limiting wallet permissions can significantly reduce risk.
As regulators and platforms work to improve monitoring tools, users remain the first line of defense.
In summary, 2025 has shown that crypto fraud is a bigger financial threat than hacks. For crypto casino players, the lesson is straightforward. Knowing how scams work is just as important as choosing the right platform. Staying alert can be the difference between a smooth win and a costly mistake.
This article is for informational purposes only, and does not constitute financial advice. Please gamble responsibly and only wager what you can afford to lose. If you feel your gambling may be becoming a problem, seek help from a trusted support organization.
Nitisha is an experienced iGaming content professional who produces strategic content for casino affiliates and operators. She focuses on creating localized, transparent, and compliant user experiences that support responsible gambling. Her expertise covers the entire player journey (from onboarding to VIP retention) through data-driven storytelling and optimized reviews. She has collaborated with major industry brands, producing multilingual content for European and Asia-Pacific markets.