Experts claim that because of the surge in fraudulent white papers, the use of deepfake technology in cryptocurrency scams, and the frequency of pump-and-dump schemes, artificial intelligence (AI) has made it increasingly difficult to distinguish between genuine cryptocurrency projects. The CEO of Braintrust, Adam Jackson, is an AI specialist. Jackson spoke on the rise of AI in cryptocurrency scams and what investors can do to stay safe.
How might criminals utilize artificial intelligence (AI) to commit cryptocurrency scams?
Adam Jackson, CEO of Braintrust: Criminals use AI to produce sophisticated phishing content, automate social engineering attacks, produce convincing deepfakes for impersonation, and even establish malicious smart contracts.
Deepfake films featuring Elon Musk endorsing phony cryptocurrency schemes and AI-generated phishing emails directed at users of significant cryptocurrency exchanges are two recent instances.
Even if they are still in their infancy, AI-powered frauds are spreading and getting more complex, especially when it comes to deepfakes and social engineering schemes.
Given how inexpensive it is to launch an assault against them and how rapidly they may spread widely, they represent a serious danger to user confidence and security inside the cryptocurrency ecosystem.
AI-driven bots are used to fabricate news stories, propagate fraudulent material on social media, and intensify pump-and-dump operations in an effort to influence investor sentiment.
AI is also capable of automating password cracking attempts, predicting user behavior to optimize attack techniques, and analyzing massive volumes of data to find vulnerabilities in platforms and exchanges.
What effect might these initiatives have on market stability and investor confidence?
These kinds of efforts have the potential to undermine investor confidence, cause market turbulence, and even incite panic sales, which can result in large losses for both individuals and institutions.
How can individuals defend themselves from frauds enabled by AI?
- When it comes to money or cryptocurrency, never reply to communications from strangers.
- Keep yourself updated on the most recent AI-driven frauds.
- Turn on two-factor authentication. This shouldn’t be done over the phone. Make use of Google Authenticator.
- Give your crypto accounts strong, one-of-a-kind passwords.
- Use a hardware security key, such as a Yubi-key, to lock all of your accounts.
- Confirm that the sources of the information are reliable.
- Exercise caution when considering financial offers that appear too good to be true.
- Notify the appropriate authorities of any suspected conduct.
