The rise of artificial intelligence (AI) in facilitating crypto crimes is becoming a significant concern, according to a recent report by blockchain analytic firm Elliptic. The report, titled “The State of AI-Enabled Crypto Crime: Emerging Typologies and Trends to Look Out For,” highlights the various ways in which AI is being leveraged for illicit activities in the crypto space.
Elliptic’s investigation identified five core typologies of AI-enabled crypto crimes. One of the most notorious methods is the use of AI-generated deepfakes, wherein scammers create fake images or videos featuring public figures like Elon Musk and former Singaporean Prime Minister Lee Hsien Loong to promote fraudulent investment schemes. These deepfakes are circulated on social media platforms like TikTok and X.com to dupe unsuspecting investors.
Another prevalent crime facilitated by AI is the creation of scam tokens, where scammers exploit the ability to easily create new tokens on blockchains to generate hype and artificially inflate prices before executing schemes like “rug-pull” or “pump-and-dump.” Tokens with names referencing AI, such as “GPT,” have been particularly popular targets for exit scams.
Cybercriminals have also been using large language models like ChatGPT to aid their illicit activities, generating new code or auditing existing code to identify and exploit vulnerabilities. While the technology has yet to consistently facilitate successful cyberattacks, the emergence of unethical AI tools like HackedGPT and WormGPT on dark web forums poses a significant threat.
AI is also being used to automate scam deployment through the creation of fake investments, airdrops, or giveaway sites widely promoted on social media and messaging apps. Additionally, identity theft and the creation of false documents on the dark web have started incorporating AI to scale their operations, such as a document-rendering service using AI to produce high-quality fake IDs and passports.
The intersection of AI and crypto presents both opportunities and challenges, with the potential for enhancing security and efficiency as well as the risk of misuse by criminals. Stakeholders in the crypto ecosystem are urged to stay informed and vigilant about these new trends in order to better protect against evolving criminal tactics involving AI technologies.
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