App-based cryptocurrency scams are surging in emerging markets, raising significant concerns for institutional investors. By 2025, global losses have hit $3.1 billion, highlighting the vulnerability of users in regions with low digital literacy and fragmented regulation. Sophisticated fraud methods, like deepfake social engineering and AI bots, are exploiting trust in mobile apps. While some countries adopt blockchain tools and regulatory sandboxes, enforcement remains inconsistent. Institutional investors are increasingly cautious, favoring third-party audits and regulated assets. A strategic approach involving enhanced analytics, real-time monitoring, user education, and alignment with global standards is essential to mitigate risks and safeguard investments.
The Growing Risk of App-Based Crypto Scams and Their Impact on Institutional Investor Sentiment
