As with any new technology, the development of AI-based innovations in the crypto industry has stimulated their use for criminal purposes. This is stated in the Elliptic report.
The company's specialists have identified five main typologies for such criminal activity:
* using generative AI to create deepfakes and advertising materials for scams;
* implementation of scams and market manipulation, including the launch of AI tokens, investment platforms, Ponzi schemes and increasingly common romantic scams ("butchering pigs");
* use large language models to detect code vulnerabilities and develop exploits;
* scaling cryptoscam and disinformation campaigns with AI tools;
* creation of new types of economic activities in the darknet markets, such as the production of fake videos and forged documents that allow you to pass KYC procedures on crypto platforms.
Experts recognized that all these areas are not only typical for the industry, but also have their own specifics.
The range of criminal use of AI in the industry is steadily expanding
As examples, they analyzed 18 real cases of criminal use of AI. So, the attackers used deepfakes of the founder of Tesla and SpaceX, Elon Musk, as well as Ripple CEO Brad Galinghaus to promote cryptocurrency airdrops. Allegedly, by transferring a certain amount of coins to the address of scammers, the user received back twice the amount.
Screenshot of a fake video with Garlinghouse and a scheme for laundering the money received by hackers
In romantic scams aimed at luring victims into a crypto-investment scam through online communication, attackers use AI to improve scenarios and increase the attractiveness of characters, Elliptic experts noted.
They found that scammers widely use the technology to create fake websites and marketing materials, including fake publications in well-known publications, to scale scams.
Experts found in the darknet a number of proposals for generating fake scans of identity documents that allow you to open an account on crypto platforms.
According to Elliptic experts, these services are gradually replacing traditional methods of image forgery using Photoshop. Thanks to the technology, they can use "package offers".
For example, one of them called OnlyFake Document Generator 3.0 offers a document for $15, 10 different ids will cost $99, and 50 — $249. Scammers advertise their services using images of the famous movie character John Wick played by Keanu Reeves.
Resist better with the whole world
Experts noted that the use of AI by criminals in the crypto industry is still at an early stage. The adoption of effective counteraction and prevention measures at this stage can significantly stop the growing threats, they are convinced.
The main recommendations in Elliptic were::
* technology developers should take into account the potential use of the solutions created by criminals, ensuring responsible and safe operation;
* policy makers and regulators should establish regulatory barriers to criminal use of useful technologies, as well as provide legal clarity on liability for consequences.;
* law enforcement agencies-take into account the changing strategies of cybercriminals, use AI and blockchain to identify and identify fraud, malware and fake IDs themselves;
* compliance specialists-strengthen monitoring measures for suspicious transactions related to criminal AI activity;
* users should pay more attention to the "red flags" that signal risks.
"Finally, it is worth repeating that, as with most new technologies, the benefits of AI and crypto assets far outweigh their potential illegal use," the experts concluded.
Billionaire investor Warren Buffett compared the threat of deepfakes to nuclear weapons.
The company's specialists have identified five main typologies for such criminal activity:
* using generative AI to create deepfakes and advertising materials for scams;
* implementation of scams and market manipulation, including the launch of AI tokens, investment platforms, Ponzi schemes and increasingly common romantic scams ("butchering pigs");
* use large language models to detect code vulnerabilities and develop exploits;
* scaling cryptoscam and disinformation campaigns with AI tools;
* creation of new types of economic activities in the darknet markets, such as the production of fake videos and forged documents that allow you to pass KYC procedures on crypto platforms.
Experts recognized that all these areas are not only typical for the industry, but also have their own specifics.
The range of criminal use of AI in the industry is steadily expanding
As examples, they analyzed 18 real cases of criminal use of AI. So, the attackers used deepfakes of the founder of Tesla and SpaceX, Elon Musk, as well as Ripple CEO Brad Galinghaus to promote cryptocurrency airdrops. Allegedly, by transferring a certain amount of coins to the address of scammers, the user received back twice the amount.
Screenshot of a fake video with Garlinghouse and a scheme for laundering the money received by hackers
In romantic scams aimed at luring victims into a crypto-investment scam through online communication, attackers use AI to improve scenarios and increase the attractiveness of characters, Elliptic experts noted.
They found that scammers widely use the technology to create fake websites and marketing materials, including fake publications in well-known publications, to scale scams.
Experts found in the darknet a number of proposals for generating fake scans of identity documents that allow you to open an account on crypto platforms.
According to Elliptic experts, these services are gradually replacing traditional methods of image forgery using Photoshop. Thanks to the technology, they can use "package offers".
For example, one of them called OnlyFake Document Generator 3.0 offers a document for $15, 10 different ids will cost $99, and 50 — $249. Scammers advertise their services using images of the famous movie character John Wick played by Keanu Reeves.
Resist better with the whole world
Experts noted that the use of AI by criminals in the crypto industry is still at an early stage. The adoption of effective counteraction and prevention measures at this stage can significantly stop the growing threats, they are convinced.
The main recommendations in Elliptic were::
* technology developers should take into account the potential use of the solutions created by criminals, ensuring responsible and safe operation;
* policy makers and regulators should establish regulatory barriers to criminal use of useful technologies, as well as provide legal clarity on liability for consequences.;
* law enforcement agencies-take into account the changing strategies of cybercriminals, use AI and blockchain to identify and identify fraud, malware and fake IDs themselves;
* compliance specialists-strengthen monitoring measures for suspicious transactions related to criminal AI activity;
* users should pay more attention to the "red flags" that signal risks.
"Finally, it is worth repeating that, as with most new technologies, the benefits of AI and crypto assets far outweigh their potential illegal use," the experts concluded.
Billionaire investor Warren Buffett compared the threat of deepfakes to nuclear weapons.
