AI will increase crypto scams.

The talk about incorporating artificial intelligence into the cryptocurrency industry mainly focuses on how AI can help combat scams, but experts are overlooking the fact that it could have the opposite effect. Hackers are taking advantage of OpenAI’s ChatGPT to gain entry into users’ Facebook accounts, as Meta has warned. The platform reported blocking over 1,000 malicious links disguised as ChatGPT extensions in March and April alone. Scammers are using the hype around the AI tool to create tokens, despite OpenAI not announcing an official entry into the blockchain world. Social media platforms have become popular channels for promoting new scam coins online, and by leveraging AI-powered tools, scammers can create a seemingly loyal fanbase consisting of thousands of people to give the illusion of credibility and popularity to their scam projects.

The use of AI challenges the assumption of social proof-of-work, which assumes that if a cryptocurrency or project appears popular and has a large following, it must be popular for a reason. However, scammers can use AI to automate and scale fraudulent activities, potentially targeting vulnerable individuals in the crypto realm. Scammers may 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. Investors have long been warned to look out for deepfake crypto scams, which use AI technologies to create very realistic online content that swaps faces in videos and photos or even alters audio content.

On a more positive note, AI has the potential to automate the boring, monotonous aspects of crypto development, acting as a great tool for blockchain experts. The barrier to entry will be lowered significantly, and the crypto industry will be less about development skills and more about whether or not one’s idea has genuine utility. However, users must exercise caution and due diligence prior to investing in a project, such as watching out for suspicious URLs and never investing in something that has sprung up seemingly out of nowhere.

• SEC sought freeze order on Binance, despite no evidence of US customer fund movement.
• Guide for Financial Advisors in Crypto’s Turbulent Waters.
• Apocalypse FedNow.

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