Chainalysis, a prominent US blockchain analysis firm, has released alarming findings regarding crypto-related scams and fraud, estimating that approximately $17 billion was stolen in 2025. This figure marks a significant increase from the $13 billion reported in 2024, highlighting a troubling trend in the digital asset sector. Concurrently, the United Nations Office on Drugs and Crime (UNODC) issued a report indicating that Asian scam syndicates are expanding their operations into Africa and the Pacific, effectively boosting their profits and scaling up their illicit activities.
The rising tide of scrutiny and regulatory measures juxtaposed with increased financial gains has shifted the focus towards Know Your Customer (KYC) bypass techniques within the online marketplace. These methods are becoming a focal point for fraudsters trying to launder money within cyberscamming and casino environments. Cybersecurity researchers have indicated that various forms of attacks are on the rise; for instance, the biometrics verification company iProov has found that virtual-camera attacks were over 25 times more prevalent globally in 2024 compared to the previous year. Similarly, Sumsub, which offers KYC services, reported that complex fraud attempts, particularly those involving virtual-camera bypasses, nearly tripled over the last year.
Among the financial institutions identified as potential targets of these scams are Binance, the world’s largest crypto exchange, along with BBVA and UK-based Revolut. Representatives from these institutions acknowledged awareness of the bypass techniques and stressed that this issue presents a challenge across the entire industry. A Binance spokesperson noted that the company has observed attempted circumventions of its security controls, though they expressed confidence in their preventive measures. Both BBVA and Revolut refrained from disclosing whether their systems had experienced breaches.
Experts in the field emphasize the difficulty in accurately gauging the success rates of these bypass attempts, as many may go unreported or unnoticed until they have already caused harm. Artem Popov, head of fraud prevention products at Sumsub, highlighted the critical nature of undetected attacks, stating, “What’s important is what we don’t see.” He pointed out that a significant portion of fraudulent activity may remain hidden from the radar of both companies and KYC providers.
Delving into how criminals navigate the intricate compliance landscape, advertisements for exploitation methods may appear straightforward, but the actual development of effective bypass techniques is highly complex and often employs multiple strategies. Some channels offer services to “jailbreak” physical devices, enabling scammers to deploy a virtual camera (VCam) in lieu of the device’s standard camera. Other methods involve injecting a “hooking framework” into financial apps, allowing the VCam to operate seamlessly. This capability enables criminals to circumvent KYC safeguards by using manipulated videos or images instead of genuine, live footage of the account holder.
Sergiy Yakymchuk, CEO of Talsec, a cybersecurity firm catering primarily to financial institutions, examined the details from Telegram channels highlighted by MIT Technology Review. He confirmed that the techniques described align with successful strategies targeted against his banking and crypto clients. Over the past year, his team has received requests from various banks and exchanges for assistance with approximately 30 VCam-based hacks—a stark increase from the fewer than 10 hacks reported in 2023.
In a concerning trend, hackers are increasingly embedding themselves into both the mobile devices and the applications of financial institutions, utilizing a combination of stolen biometric data and deepfake technology to manipulate VCams, thereby posing a significant risk to security protocols across the industry.
