Expect Surge in Crypto Scams with Advancements in AI
There are growing concerns that scammers will use artificial intelligence (AI) to develop new methods of fraud and deception as the technology continues to advance.
One of the primary ways in which scammers are using AI is through social media platforms. By leveraging AI-powered tools, scammers can amplify their reach and create a seemingly loyal fanbase consisting of thousands of people.
These fake accounts and interactions can be used to give the illusion of credibility and popularity to their scam projects.
Scammers may even use AI-driven chatbots or virtual assistants to engage with individuals, provide investment advice, promote fake tokens and initial coin offerings, or offer high-yield investment opportunities.
The use of AI can challenge social proof-of-work, which assumes that crypto projects with greater and more loyal followings online must be legitimate.
With AI making it easier for projects to scam people, users must exercise caution and due diligence prior to investing in a project.
One example of how scammers are using AI is through the use of “pig butchering” scams. AI instances can spend several days befriending someone, usually an elderly or vulnerable person, only to end up scamming them.
The advancement of AI technologies has enabled scammers to automate and scale fraudulent activities, potentially targeting vulnerable individuals in the cryptosphere.
In addition, by leveraging social media platforms and AI-generated content, scammers can orchestrate elaborate pump-and-dump schemes, artificially inflating the value of tokens and selling off their holdings for significant profits, leaving numerous investors with losses.
Investors have long been warned to look out for deepfake crypto scams, which use AI
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