The use of artificial intelligence (AI) in cryptocurrency fraud is not yet a widespread trend, but experts from Elliptic warn that its application is on the rise.

AI in Crypto Fraud: Emerging Threats

The recent report by Elliptic, a renowned blockchain analytics company, highlights the growing use of AI in cryptocurrency fraud. Although it hasn’t become a major trend yet, the technology is increasingly being used by cybercriminals. According to the report, fraudsters are leveraging AI to create more sophisticated and convincing scams.

Exploiting Celebrity Names

One of the key insights from the Elliptic report is the use of celebrity names to lure victims. Scammers have impersonated well-known figures such as Elon Musk and former Singapore Prime Minister Lee Hsien Loong. In October 2023, fraudulent ads on YouTube claimed that Elon Musk had created a crypto platform promising “substantial profits” for a one-time payment. Similarly, in December, a deepfake video featured the Singaporean Prime Minister promising “guaranteed returns” from crypto investments.

AI-Generated Fraudulent Tokens

The report also sheds light on the proliferation of fraudulent tokens on the blockchain. Hundreds of tokens, incorporating terms related to AI, such as “GPT,” have been registered. While some of these tokens are legitimate, Elliptic analysts found many to be fraudulent, created to deceive investors.

AI-Driven Cyberattacks and Disinformation

AI’s capabilities extend beyond creating fraudulent tokens and impersonating celebrities. Elliptic experts caution that cybercriminals could use AI to conduct cyberattacks and spread disinformation. This technological advancement poses a significant threat to the integrity and security of the cryptocurrency market.
The increasing use of AI in cryptocurrency fraud underscores the need for robust security measures and vigilant monitoring. As AI technology progresses, both its potential benefits and risks will continue to evolve, shaping the future landscape of the crypto market.