AI Integration in Crypto Scams Shows Emerging Threats, Elliptic Report Highlights

June 11, 2024

By Anjali Kochhar

According to a recent analysis from the British blockchain analytics startup Elliptic, artificial intelligence (AI) is increasingly being used for illegal activities in the cryptocurrency space. While AI-driven cryptocrime has yet to reach popular levels, recognizing these emerging trends is critical for supporting long-term innovation.

One of the notable uses of AI in crypto scams involves the creation of deepfakes featuring celebrities and authoritative figures to promote fraudulent schemes. For instance, video clips of individuals like Elon Musk and former Singaporean Prime Minister Lee Hsien Loong have been manipulated to endorse crypto investment scams.

Earlier this month, DL News reported on a social media advertisement featuring a deepfake video of Lee endorsing crypto investments, wherein bogus audio was superimposed over footage from a speech he delivered earlier in the year. In response, Lee expressed concern, stating, “This is extremely worrying: People watching the video may be fooled into thinking that I really said those words. The video is not real!”

Additionally, AI has become a tool for generating hype around scam tokens. The Elliptic report points out that there are numerous tokens listed on blockchains with variations of the term “GPT” in their names, potentially misleading investors. While some of these tokens may be legitimate, Elliptic has identified a significant number of scams among them.

The research also goes into the arguments around the usage of AI techniques for code audits and bug detection. There are concerns that black hat hackers may use these capabilities to detect weaknesses and orchestrate operations. Companies such as Microsoft and OpenAI have identified instances of Russian and North Korean threat actors attempting such approaches, but others believe the technology is still in its early stages.

As AI evolves, vigilance against its misuse in the cryptocurrency arena becomes increasingly important, with experts pushing the industry to keep ahead of emerging dangers to ensure a secure and trustworthy ecosystem.

About the author

Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.

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