According to a report by the UK-based blockchain data analysis firm Elliptic, Artificial Intelligence (AI) is still in its early stages as a technology and is being used for criminal activities in the crypto space. The report states that although AI-powered crypto crimes are not yet a mainstream threat, identifying emerging trends is crucial for sustainable innovation.
Deepfake Fraud Continues
Crypto investment scams have recently been using deepfake videos of celebrities and authority figures to promote themselves. These scams feature video footage of many famous names, including Elon Musk and former Singapore Prime Minister Lee Hsien Loong.
Earlier this month, a social media ad featuring a video of Lee promoting crypto investments was revealed to be a deepfake, with fake audio overlaid on a speech he gave earlier this year. Regarding the issue, Lee stated in a Facebook post:
“This is extremely concerning: People watching the video might be misled into thinking I actually said these words. The video is not real.”
AI and the Crypto Space
According to the Elliptic report, AI is also a factor generating excitement for scam tokens. For instance, there are hundreds of tokens listed on blockchain networks that carry a version of the term GPT in their names. While some may be products of legitimate ventures, Elliptic reported detecting numerous scams among them.
The report discusses whether AI tools can be used for code auditing and error checking and whether black hat hackers can use these capabilities to identify and design attacks. While Microsoft and OpenAI have reported that Russian and North Korean threat actors have engaged in such activities, the Elliptic report suggests that others argue their technologies are not yet fully developed.
Particularly in the crypto sector, which has seen a significant market formed by the memecoin hype, these types of initiatives can lead to many investors being scammed and suffering substantial losses.
