Rise In AI-Driven Cryptocurrency Scams, Reports Elliptic

According to Odaily, a new report by Elliptic reveals an increasing use of artificial intelligence (AI) in committing crimes within the cryptocurrency ecosystem. The report highlights that criminals are increasingly utilizing generative AI to create deep fakes and other deceptive materials to carry out cryptocurrency scams. Additionally, there has been a significant rise in AI-related scam tokens, investment platforms, Ponzi schemes, and fake trading bots. Elliptic points out that scammers often use popular technology and jargon to create tokens or investment plans, which ultimately lead to exit scams. A notable incident involved a fake AI trading bot named iEarn in 2023, which resulted in a loss of approximately $6 million. The surge in AI trading bots prompted a warning from the U.S. Commodity Futures Trading Commission (CFTC) in January. The report further adds, 'Apart from creating tokens, scammers also use AI as a means of hype on fraudulent investment platforms. Specifically, scammers attempt to leverage the potential of AI to enhance trading or arbitrage capabilities.' Moreover, AI technology is being used to facilitate large-scale cryptocurrency scams and disinformation campaigns.