Artificial Intelligence (AI) has become a very useful tool and a powerful shield against cryptocurrency fraud.
The cost of using crypto scams continues to drop as AI accelerates the process. However, exchanges are turning to the same technology to strengthen their security.
Inside the AI vs AI Arms Race Reshaping Crypto Security
Binance Research recently emphasized that AI tools use smart contracts to double the way they see problems. Attacks cost less than $1.22 per contract, down 22% month-over-month, with top models winning 72.2% of the time.
“The barrier to entry for fraudsters is falling rapidly, and AI is rapidly falling. What once required technical expertise can be done with nothing and at scale,” Binance. he realized.
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The problem goes beyond the codes. Chainalysis reports that scammers use deepfakes, face-changing tools, and types of romantic and seductive language.
In particular, AI-driven services earning about $3.2 million each, about 4.5 times more than traditional crypto fraud.
“Today, 76% of AI-driven scams fall within the highest and most dangerous quartile, and in 2025 alone, crypto-related fraud will reach $17 billion – an annual increase of 30%.
Binance Builds AI-Powered Counter-Offensive
However, crypto platforms are pushing back with their deployment of AI. Binance said it has released more than 100 AI models and 24 volunteer jobs.
In the first quarter of 2026, the exchange stopped 22.9 million fraud attempts, protecting $1.98 billion of users’ money.
“Together, $10.53 billion in user losses were prevented from the beginning of 2025 to Q1 2026 for more than 5.4 million users. We re-indexed more than 36,000 malicious addresses and issued more than 9,600 warnings every day to help users avoid future threats,” it added.
The exchange also revealed that AI-powered decisions now control 57% of fraud, helping to cut card fraud rates by 60% to 70% compared to industry benchmarks.
AI cuts both ways. It can be turned into a weapon by criminals, but it can also harden the behavior of their targets. The best in this The arms race will be everyone it develops technology very quickly.
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A note AI Is Now a Weapon and Shield in the Crypto Fraud War appeared for the first time BeInCrypto.
