Cryptocurrency use in the United States has grown over the past year, but concerns over fraud and trust continue to dominate. New research from Sumsub, a global verification and anti-fraud firm, shows that one in three Americans have either experienced or know someone affected by crypto-related scams.
Widespread Adoption, Persistent Risk
According to Sumsub’s survey, 36% of U.S. adults used or interacted with cryptocurrency in the past 12 months. Younger users are leading this adoption but also face higher exposure to scams. Nearly half of Gen Z, at 46%, and Millennials, at 49%, reported direct or indirect experience with fraud.
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The most common schemes include social engineering, Ponzi schemes, and fake giveaways, each cited by about 30% of respondents. Phishing, impersonation, fake airdrops, wallet draining, and rug pulls were also frequently reported. Synthetic identity fraud, often involving AI-generated deepfakes or forged documents, affected 35% of respondents, with nearly one in five personally targeted.
Sumsub’s internal data shows that synthetic identity document fraud in the U.S. increased by more than 300% in the first quarter of 2025 compared to the same period in 2024. Deepfake-related fraud rose by 700% during the same timeframe.
Financial Impact and Accountability
Among those affected by online or crypto scams, the average loss from the most severe incident was about 3,300 dollars. When asked who should be responsible for recovering the funds, 33% said platforms should bear the cost, while 20% believed individuals should absorb the losses themselves.
Declining Trust and Demand for Oversight
Despite growing participation, trust in cryptocurrency platforms remains low compared to traditional financial institutions. Only 26% of respondents expressed greater confidence in crypto services, while 54% said they trust them less, including 41% who said much less.
Most respondents support stronger regulatory measures. Three in five favor government regulation of crypto platforms, including proposed laws such as the GENIUS Act and the Clarity for Payment Stablecoins Act.
Both bills aim to create clear frameworks for stablecoin issuance and enhance consumer protection against fraud. Support for these measures is highest among people who have encountered scams.
AI-Related Concerns
Fraud driven by artificial intelligence has also drawn public attention. About 69% of respondents agreed that companies developing generative AI should be held accountable if their technology is misused to commit fraud. This survey of 2,000 U.S. adults was conducted during the first week of September this year.
This article was written by Tareq Sikder at www.financemagnates.com.
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