Scammers use EOAs to drain wallets after approval permissions are granted.
Binance’s CZ and Ashesi University’s president among latest deepfake targets.
McAfee says the average American sees three deepfakes daily.
Scammers are combining deepfake technology with sophisticated blockchain tactics to dupe crypto users out of millions.
According to GoPlus Security’s findings, a new wave of sophisticated attacks is driving crypto-related losses sharply higher.
These schemes combine long-term phishing campaigns with AI-generated deepfake impersonations of public figures, contributing to losses exceeding $200 million in the first quarter of 2025.
This marks an alarming trend where fraudsters exploit both the technical loopholes in token approvals and the psychological trust generated through synthetic media.
Micro-rewards scam ends in wallet drain
In its latest analysis, GoPlus Security outlined a multi-step campaign run across major blockchain ecosystems.
The attack begins with the release of what appears to be a legitimate token or project, offering stable rewards in USDT in exchange for completing simple tasks.
These include following social media handles, joining Telegram channels, or filling out surveys—actions that seem harmless.
To build trust, scammers send micro-rewards—tiny amounts of USDT or tokens—to the user’s wallet.
Over several days, they repeat these transactions, slowly establishing legitimacy.
This extended engagement is key to the strategy, GoPlus noted, as it reduces suspicion and conditions the user to accept ongoing rewards.
The trap is sprung when users are coaxed into granting token approval permissions, often to externally owned accounts (EOAs) instead of smart contracts.
Once access is granted, high-frequency bots wait for the wallet balance to hit a target threshold.
When that happens or when signs of revocation are detected, bots initiate front-running operations to drain funds in seconds, regardless of gas fees.
ZachXBT urges revoking token approvals
GoPlus Security and blockchain sleuth ZachXBT both urge users to limit token approvals and use safety tools that automatically revoke dormant permissions.
According to ZachXBT, checking contract legitimacy, limiting approval scope, and monitoring activity histories are essential to preventing theft.
This warning follows months of growing concern about token approvals, which have long been a soft target for scammers.
As tokens and decentralised finance (DeFi) tools grow more complex, bad actors now use behavioural tactics that mimic legitimate project launches, bridging the gap between technical deception and social engineering.
Deepfakes used to fake crypto endorsements
While token approval scams have existed for years, 2025 marks a new chapter in crypto fraud with the weaponisation of deepfake AI.
Scammers are now producing fake video content of major personalities promoting non-existent platforms.
In one example, Binance co-founder Changpeng Zhao (CZ) warned followers in January that AI-generated videos were falsely linking him to scam investments.
A more severe case occurred in Ghana, where scammers created a deepfake of Ashesi University President Patrick Awuah Jr. to endorse a fake scheme named “Crypto Klutz.”
The video was embedded in a doctored version of Graphic Online, the country’s leading news outlet, alongside fake X posts to enhance credibility.
Ashesi University issued a formal statement distancing itself from the scam, urging the public to report any instances and help prevent further spread.
AI fraud scales with synthetic media
According to McAfee’s recent findings, the average American now sees at least three deepfake videos daily, many related to cryptocurrency fraud.
The firm identified five telltale signs of AI-driven scams, including urgency, celebrity endorsements, requests for wallet keys or upfront payments, fake exchanges, and too-good-to-be-true returns.
With losses surpassing $200 million in Q1 2025 alone, this wave of synthetic media-backed scams represents a significant step up in fraud complexity.
Scammers can now scale their campaigns faster than ever before, using generative AI to produce convincing content at low cost.
As trading bots grow faster and fake endorsements become harder to detect, the crypto space is entering a new phase of threat where vigilance is no longer optional.
