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AI is fueling a surge in crypto fraud schemes, IRS investigators say

AI is fueling a surge in crypto fraud schemes, IRS investigators say

Summary

A 73-year-old woman named Kyle Holder lost $300,000 of her life savings in a cryptocurrency scam that used artificial intelligence (AI) to trick her. The FBI says thousands of Americans lost an estimated $20 billion to cyber thefts in 2025, with over half involving cryptocurrencies.

Key Facts

  • Kyle Holder was contacted via WhatsApp in late 2024 by someone offering crypto investment coaching.
  • The scammer, using the name Niamh, built a friendly relationship before asking for money transfers.
  • Holder sent nearly $300,000 to 14 different cryptocurrency wallets controlled by the scammers.
  • AI was used by criminals to manipulate and fool victims more effectively.
  • When Holder questioned the scam, the messages became more threatening.
  • Holder suffered serious emotional and financial harm, leading to her moving into an assisted living facility.
  • The IRS Criminal Investigation unit is investigating the scam and tracing the cryptocurrency transfers.
  • The FBI estimates $20 billion was lost in crypto-related cyber thefts by Americans in 2025.
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