California Attorney General Reports $11.4 Billion Loss to Crypto Scams in 2025

Americans lost $20.9 billion to internet-based scams in 2025, and $11.4 billion of that total resulted specifically from cryptocurrency fraud, according to state Attorney General Rob Bonta.

Bonta said on Monday that law enforcement agencies across California are seeing a sharp increase in reports involving people born between 1997 and 2012. These victims are being targeted by fraudsters operating on platforms such as Twitch, TikTok, and Instagram. The attorney general noted that while these are traditional scam methods, the mechanics of digital assets allow predators to move money faster and bypass physical safeguards.

The use of cryptocurrency allows scammers to extract large sums of money remotely in minutes. Unlike gift card fraud, which often involves physical purchases and resale, digital wallets and Bitcoin ATMs enable fraudsters to avoid face-to-face contact. This pseudonymity makes it difficult to reverse transactions or trace the funds. Bonta said that syndicates now use generative AI, deepfakes, and malicious smart contracts to drain digital wallets quickly.

Five specific types of crypto scams are currently common in the region. Sextortion involves a scammer threatening to share private images or videos unless the victim sends money or crypto. AI-driven super-scams use voice clones and deepfake videos to impersonate loved ones or public figures. The liquidity mining illusion tricks victims into connecting their wallets to fraudulent yield farming or gaming platforms. Victims see fake income on a dashboard before a smart contract drains their real wallet. Recovery fraud targets victims a second time, with fake experts or law enforcement promising to hack back stolen funds for an upfront fee.

The rug pull scam lures victims into online investment groups or streaming communities. Scammers hype low-priced stocks or volatile cryptocurrencies to increase their prices. They then sell at the peak, leaving the victims with a loss. Bonta urged Californians to stay informed and never use a cryptocurrency ATM. He also advised people to pause for nine seconds before clicking, engaging, or sending money to anyone online.

Generation Z is the demographic group that follows millennials and precedes Generation Alpha. The definition for this group includes individuals born from 1997 to 2012. Bonta said that cryptocurrency fraud has become the nation's costliest cybercrime. He urged residents to report incidents if they have been scammed.