In 2024, fraud in the cryptocurrency sector led to staggering losses of $4.6 billion. The primary methods involved manipulation using artificial intelligence, requiring special attention from users and the industry.
AI Fraud in Cryptocurrency
According to the Bitget report, in collaboration with SlowMist and Elliptic, in 2024, fraudsters utilized AI technologies to create undetectable and large-scale scams. Traditional methods like phishing have taken a backseat to more sophisticated tactics. Scammers impersonate company executives, public figures, and fictitious recruiters, making fund recovery nearly impossible.
Three Major Directions of Modern Fraud
The Bitget report identifies three key directions: impersonation with deepfakes, sophisticated social engineering schemes, and Ponzi schemes disguised as DeFi and NFT projects. Ultra-realistic videos featuring public figures serve as catalysts for massive fund transfers. Additionally, there is a rise in opportunistic fraud through fake job offers and romantic scams targeting personal characteristics of victims.
The Necessity of Collective Security Measures
To combat this wave of fraud, a collective effort from the entire ecosystem is required. Bitget activates its Anti-Scam Hub, deploys advanced monitoring tools, and utilizes a protection fund. SlowMist tracks fraudulent schemes through blockchain analytics, while Elliptic monitors money laundering schemes. Users must also be vigilant, learn to recognize signs of fraud, and stay informed.
As the crypto industry gains popularity, security can no longer remain in the background. It must become the new standard, allowing users to safely interact with cryptocurrencies.
