A recent study highlights that crimes driven by artificial intelligence in the cryptocurrency sector are still in their early phases.
Timely and strategic actions from stakeholders could prevent these activities from becoming widespread.
The study also reports a notable increase in tokens with AI-related keywords such as GPT, Openai, and Bard, with around 4,500 of these tokens on the BNB Smart Chain.
Early Intervention is Key
Elliptic’s new study reveals that most AI-enabled threats in the cryptocurrency ecosystem are still in their infancy.
This presents a crucial opportunity for stakeholders to mitigate these risks with early and calculated responses before they become more common.
The report identifies five types of AI-related crimes that need to be addressed to prevent their escalation.
It also points to the growing use of generative AI in cryptocurrency scams, suggesting that collaboration between crypto professionals and law enforcement could be effective in combating this type of crime.
Increasing Use of AI in Scams
The report underscores how cybercriminals are using AI to enhance their malicious activities, including creating deepfakes of prominent figures like Elon Musk.
One particularly bold case involved a deepfake video of former Singapore Prime Minister Lee Hsien Loong endorsing a cryptocurrency scam.
Other deepfakes have featured former Taiwanese Presidents Tsai Ing-wen and Lai Ching-te.
Additionally, the study notes an increase in the creation of AI-related tokens by criminals, with approximately 4,500 such tokens identified on the BNB Smart Chain, predominantly using the term GPT over Openai or Bard.
State-Sponsored Hackers and AI Integration
The study also highlights the efforts of state-sponsored hackers to exploit AI technologies, such as ChatGPT, to find vulnerabilities in smart contracts for executing cryptocurrency heists.
North Korean hackers are particularly noted for their advanced use of AI in enhancing their hacking capabilities.
According to the United Nations, North Korean groups have been responsible for over 60 cryptocurrency heists, stealing more than $3 billion in crypto from 2017 to 2023.
Recent reports and future threat assessments indicate that these groups are increasingly turning to AI for their operations.
Collaborative Prevention Measures Needed
Elliptic’s report emphasizes that addressing these threats successfully requires collaboration among various stakeholders, including law enforcement, crypto compliance professionals, AI and crypto users, technology developers, policymakers, and regulators.
The report recommends a set of measures, collectively known as DECODE: Detect, Educate, Cooperate, Defend, and Enforce.
By implementing these strategies, stakeholders can help ensure that the benefits of AI and crypto assets continue to outweigh their potential misuse for criminal purposes.
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