Crypto scams have existed since the inception of digital currencies. However, due to its large market audience, artificial intelligence (AI) innovations have increased scammers’ interest in the crypto sector.
This guide will discuss how AI and deepfakes are birthing new crypto scams and what you could do to safeguard yourself.
What Are Crypto Scams?
Crypto scams include phishing, Ponzi schemes, fake investments, and other cryptocurrency-based fraudulent schemes. Scammers often pose as CEOs, influencers, or stars to build trust and get their victims to give over their digital assets.
Scammers have plagued cryptocurrency since its inception, but the global impact of AI and deepfakes has resulted in a new level of scam.
How AI Powers Crypto Scams
AI has changed the game for cryptocurrency scammers. Such frauds traditionally involved random phishing emails or pop-up advertising offering large investment returns.
However, AI now allows scammers to adapt their attacks to specific victims, making the scams more personal and with a higher chance of success. Artificial intelligence can compile data on online behavior to track an individual’s crypto transactions, social media contacts, and investment history.
It then uses this information to craft convincing, customized fraud schemes. For instance, AI can make social media postings from reputable industry leaders’ social channels or develop phoney websites that look like actual crypto exchanges.
In addition, many AI tools can improve themselves over time. If a plan fails, an AI takes the failed plan, learns from it, and then tries again with a different approach.
This constant refinement makes it harder for traditional security measures to detect it, enabling scammers to swiftly double their efforts, reach more potential targets and achieve a higher success rate.
How Deepfakes Make Crypto Scams More Dangerous
Another significant risk to the crypto space is deepfake videos. Deepfake technology uses AI-powered applications to create videos or audio of almost anything, including a person’s face.
In most crypto scams today, scammers impersonate Elon Musk or Tim Cook through deepfake videos or voice recordings. Some scammers have even advertised cryptocurrency investment ideas with deepfakes, and many have fallen victim to such scam investments.
The rapid development of deepfake technology makes this worry more pressing because most people can’t tell fake information. However, videos are not the only source of deepfakes. AI-driven chatbots and fake customer support executives are also crypto scam contributors.
These bots engage with customers so well that some disclose their private information, such as private keys or account details.
Detecting AI and Deepfake Crypto Scams
Due to the high level of personalization, it is not easy to eliminate scams built on AI and deepfakes. Nevertheless, there are a few aspects you can always look out for.
- Odd Movement Displayed by Humans in a Video
While Deepfake may continue to evolve in terms of interaction and entertainment, its videos will remain imperfect for an extended period. When watching these videos, little things, such as a person behind a video delivering dialogue at the wrong timing or a noticeable off-body synchronization, can make one skeptical about the video.
- Voice Changes
One significant problem with voice-over is deep-fake audio. The voice may sound too mechanical or robotic when listening to the recordings.
- Crypto Offers That Are Too Good To Be True
Unfortunately, scammers will always seek AI assistance to craft high-yield investment schemes that do not exist. If you see an opportunity with unrealistic returns within a short period, such opportunities could be scams in disguise.
Review such opportunities critically, even if your favorite crypto influencer promotes them.
Deep Consequences
Broader crypto adoption has led to the emergence of many new opportunities for individual investors in the crypto market. However, so has the emergence of AI and deepfake-driven scams.
- Financial implications
Cryptocurrency scams are notorious for deceiving investors into sending significant amounts of funds to scammers, so one of the biggest consequences for investors is the loss of funds.
- Less Trust in Crypto
Scammers impersonate notable figures, ruining the reputation of the entire crypto industry. A sufficient amount of scamming can discourage investors.
- Difficulty in Tracing Scammers
AI and deepfake technology help scammers make it difficult for law enforcement agents to track them. In cryptocurrency, there is almost no chance of getting anything back once a recipient receives the funds.
- Limited Oversight
Custodial and crypto exchanges run on self-accounting systems, which are not heavily regulated. This makes adopting applicable laws to defend victims and punish fraudsters difficult.
How to Protect Yourself
The most crucial step is to stay updated always.
- Verify Information
Always validate any investment proposal or endorsement before contacting them. Ensuring the source is legitimate is essential, so check if an official site or platform exists. Verify and cross-check via trusted sources before taking any investment step.
- Use AI-Driven Detection Tools
Some non-crypto Internet Protection Services have software that detects fake videos. Use these to your advantage.
- Self-Education
Take more tutorials to understand how fraud occurs in crypto. It is one effective personal security mechanism. Moreover, update yourself with the latest scam methods to identify fraudulent signs.
Conclusion
Crypto scams using AI and deepfake technology are complex. Knowing how these schemes work will help you avoid AI-driven crypto fraud.
