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Artificial intelligence and cryptocurrencies: watch out for scams in 2024

by Thomas

The artificial intelligence sector is booming, and the technologies are increasingly being used by scammers. Several security firms are thus warning about the future of cryptocurrency “scams”, with examples to back them up. So, what scams will be on the rise in 2024?

Artificial intelligence used for cryptocurrency scams

Artificial intelligence (AI) has already begun to be used for proven scams, for phishing attempts. These can now be based on “deep fakes”, i.e. videos featuring celebrities, generated by AI.

In mid-December, Charles Hoskinson, head of Cardano (ADA), warned of a scam using his image:

“As expected, scams based on generative AI are here. They’ll be even better in 12 to 24 months, and it’ll be hard for anyone to distinguish between fact and fiction. “

Fake chatbots and pig butchering

According to several industry experts, AI isn’t just used to create deep fakes. It’s also used to generate plausible textual content. Some scams, including the well-known “CryptoRom”, are based on chatbots, programmed to interact with victims. The progress of AI services means that conversations can be simulated far more naturally than before, potentially attracting more people.

Generative AI is also being used for pig butchering. These are scams where criminals create fake romantic relationships with their victims, before extracting money from them. They use generative AI to automate certain conversations, or translate text into other languages, which helps them reach several people at once. Once trust has been established, they demand cryptocurrencies from their victims.

More classically, scammers also make use of generative AI to easily generate and verify computer code. This enables them to create malicious programs, or detect vulnerabilities. Certain areas of cryptocurrencies could therefore be more vulnerable, due to their innovative aspect. This is the case, for example, with BRC-20, which is a very new ecosystem.

How to protect yourself from AI-based scams

To protect yourself from scams of this type, of course, you should always check where a video or piece of information comes from. The term “giveaway” should already arouse suspicion, since it is rarely used by legitimate players. You should also always check that a publication comes from an official site, and not from a copy based on a different URL.

Generally speaking, it’s particularly inadvisable to send digital assets to someone you don’t know, or to sites that promise very high returns on investment. As is often the case in cryptocurrencies, not giving in to “FOMO” is therefore key.

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