New data reveals that while cryptocurrency adoption is growing in the U.S., fraud and mistrust remain major concerns

• A third (33%) of Americans have been personally or indirectly affected by crypto scams, with higher exposure among Gen Z (46%) and Millennials (49%)
• Average reported loss in the most severe case was nearly $3,300.
• Over a third (35%) have encountered synthetic identity fraud, including AI-generated or forged documents
• Three-in-five (58%) support increased government regulation of crypto platforms to protect users
  

Over the past year, cryptocurrency adoption in the U.S. has become increasingly popular. Yet new Sumsub research highlights a landscape still plagued by scams and mistrust. One in three Americans (33%) have personally experienced or know someone affected by crypto-related fraud, demonstrating the ongoing risks even as digital asset use expands.

Widespread engagement but significant risk
Findings from Sumsub’s survey show that 36% of U.S. adults have interacted with cryptocurrency in the past 12 months. Usage is higher among younger generations.

• Gen Z and Millennials not only participating but also disproportionately affected by scams: nearly half of Gen Z (46%) and Millennial (49%) crypto users have experienced crypto fraud firsthand or through acquaintances.
• Social engineering (31%), Ponzi schemes (30%), and fake giveaways (30%) were reported as the most common scams, alongside phishing, impersonation, fake airdrops, wallet draining, and rug pulls. 
• Synthetic identity fraud, including AI-generated deepfakes or forged documents, impacted 35% of respondents, with one in five (18%) personally targeted.

Concerns within the crypto sector are rising against the backdrop of increasingly sophisticated fraud techniques across the wider economy. Internal data from Sumsub shows that in the U.S., Q1 2025 compared to Q1 2024, synthetic identity document fraud across all industries has surged by over 300%, while deepfake-related fraud has increased by 700%.

High financial stakes and unmet protections
Of those affected by online fraud or crypto scams, the average reported loss in their most severe case was approximately $3,300.

• When asked who should help recover these funds, a third (33%) expect platforms themselves to take responsibility
• One-in-five (20%) feel individuals should bear the loss.

Trust and regulation remain top concerns
Despite growing adoption, trust in the cryptocurrency industry lags behind traditional banks. Respondents overwhelmingly support regulatory action.

• Only a quarter (26%) report greater confidence in crypto platforms
• Over half (54%) trust them less, including 41% “much less.”
• Three-in-five users (58%) favor government regulation of crypto platforms, including proposed bills such as the GENIUS Act and the Clarity for Payment Stablecoins Act, which establishes clear rules for issuing and using stablecoins. 

Both aforementioned acts aim to give users stronger protections against fraud. Support is particularly strong among those who have experienced scams firsthand.

Another key concern is accountability in generative AI, with 69% agreeing that companies developing generative AI models should be held responsible if their technology is misused to commit fraud.

Anastasia Shvechkova, Head of Business Development, Americas at Sumsub: “Our research shows that U.S. users want crypto platforms to succeed, but they also want accountability and transparency. Legislative initiatives like the GENIUS Act are welcome, but enforcement and clarity are crucial to protect consumers and build trust. Crypto adoption is accelerating and those that fail to integrate robust, proactive solutions measure risk penalties and reputational damage.

Ilya Brovin, Chief Growth Officer at Sumsub: “Crypto adoption is accelerating, and the threat landscape is evolving just as quickly. Users need reassurance that their assets are secure, while companies need clear frameworks to prevent misuse. As the industry moves past its ‘Wild West’ phase, businesses that prioritize strong onboarding processes and fraud prevention. However, companies must go beyond standard KYC. With 76% of fraud happening after the onboarding stage, the industry must adopt a multi-layered fraud prevention approach that protects platforms and users at every stage of their journey.”

This representative survey of 2,000 U.S. adults was conducted from 2–8 September 2025.