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HomeSecurityAI-Powered Scams Threaten Crypto Users: Staying Ahead of the Curve

AI-Powered Scams Threaten Crypto Users: Staying Ahead of the Curve

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The rise of artificial intelligence has opened up new possibilities for innovation in the crypto space, but it has also created new avenues for threat actors to exploit. According to a recent report, AI is already being deployed in nefarious ways, including creating and disseminating deepfakes to make more convincing scams, building AI-scam tokens to capitalize on hype, and using large language models to devise hacks.

The report identified five “typologies” where AI is being used to facilitate crypto-related scams. These include creating convincing phishing websites and prompts to facilitate identity theft, spreading disinformation, and using AI to devise hacks.

While the risk of AI-powered scams remains small, it is essential for crypto users to be aware of these new threats. As Pete Pachal, author of the Media CoPilot Substack, noted, “The reason there is no easy way to deal with the problem is because it’s really multiple problems, each with its own variables and solutions.”

One of the most significant concerns is the increasing difficulty in spotting deepfakes. A recent video circulated on social media of fake Elon Musk promoting a fake trading platform, which apparently tricked some people. Verification company Sumsub claims that crypto was the main target sector for almost 90% of deepfake scams detected in 2023.

The FBI’s online crime report found that crypto investment losses in the U.S. grew 53% to $3.9 billion last year. While some instances of fraud may be incidentally related to crypto, it is essential for users to be vigilant and verify the authenticity of information.

As CFTC Commissioner Summer Mersinger noted, “I think it’s a little unfair because a lot of these cases are just run of the mill fraud; somebody stealing someone else’s money, someone claiming to buy crypto, but not actually buying the crypto.”

To stay ahead of the curve, crypto users should be aware of common types of crypto-related scams, such as social media scams, Ponzi schemes, rug pulls, and “romance scams” (now often referred to as “pig butchering”). As MetaMask builder Taylor Monahan advised, “always know you’re a potential target, and actually verify what you’re clicking on is what it purports to be.”

In a low-trust environment like crypto, it is crucial to be vigilant and take steps to protect oneself from AI-powered scams.

Source: Coindesk

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