Chainalysis has reported a sharp increase in AI-powered crypto scams. Since 2021, these scams have grown by 1,900%, and in 2024, crypto wallets linked to scams received over $9 billion.
High-Yield Scams and Pig Butchering Leading
The leading crypto scam schemes in 2024 include high-yield investment scams and 'pig butchering.' 'Pig butchering' describes tactics where fraudsters build fake relationships on dating apps or social media to persuade victims to invest in fake crypto projects. Revenue from these scams soared by about 40% compared to the previous year. High-yield scams typically operate as Ponzi schemes, promising high returns in short time frames. An example is Smart Business Corp, which received over $1 billion while promising unrealistic returns on Bitcoin but failed to deliver.
AI Tools Educating Cybercriminals
AI tools like ChatGPT are exploited by hackers to craft new codes and identify vulnerabilities in blockchain systems. Black hat hackers use these tools for creating phishing emails and scanning for smart contract vulnerabilities. Most tools now reject malicious requests, forcing criminals to dark web forums. However, illegal AI models like WormGPT are accessible, enabling even non-technical criminals to launch attacks.
Counteraction Efforts and Crypto's Future
While AI-powered crypto scams grow, the potential of AI also offers significant benefits. This doesn't mean these crimes should be overlooked. The survival of cryptocurrency depends on combined efforts from governments, regulators, and blockchain companies to combat crypto scams as AI continues to advance, with scammers adapting.
As technology evolves, regulators and companies face significant challenges in tackling these threats. Collaborative efforts can help mitigate risks to the cryptocurrency industry.
