A new report from Elliptic reveals the increasing use of artificial intelligence (AI) in committing crimes within the cryptocurrency ecosystem. The report highlights that criminals are increasingly using artificial intelligence to create deepfakes and other deceptive materials to carry out cryptocurrency scams. In addition, there has been a significant rise in AI-related scam codes, investment platforms, Ponzi schemes, and fake trading bots.
Elliptic points out that scammers often use popular technology and terms to create tokens or investment plans, which ultimately leads to scams. One notable incident included a fake AI trading bot called iEarn in 2023, which resulted in a loss of nearly $6 million. The surge in AI trading bots prompted a warning from the US Commodity Futures Trading Commission (CFTC) in January.
The report also adds: “Apart from creating tokens, scammers are also using AI as a means to hype fraudulent investment platforms. Specifically, scammers are trying to leverage the potential of AI to enhance trading or arbitrage capabilities. Furthermore, AI technology is being used To facilitate large-scale cryptocurrency-related fraud and disinformation campaigns
