Researchers Develop AI System to Detect Cryptocurrency Giveaway Scams on Twitter
Researchers at San Diego State University have created an AI system called GiveawayScamHunter to identify and expose cryptocurrency giveaway scams on Twitter. The system discovered over 95,000 scam lists created by 87,000 accounts on the platform between June 2022 and June 2023. Using GiveawayScamHunter, the researchers were able to uncover 327 scam giveaway internet domains and 121 new scam-related cryptocurrency wallet addresses. The study estimated that over 365 victims fell victim to these scams, resulting in a loss of more than $872,000.
Insights into the Working of Crypto Scams
The researchers provided valuable insights into how these scams operate and target victims. They found that scammers exploit Twitter Lists, a networking tool, due to their permissionless nature. By training a natural language processing tool on previously identified scams, the researchers identified nearly 100,000 instances of giveaway scam lists. They also shared their findings with Twitter and the crypto community. However, 43.9% of the associated accounts identified in the study remained active as of the report’s publication.
Scammers Using AI to Develop New Scam Methods
Scammers and bad actors have started using AI technology to create new methods of fraud and deception. By leveraging AI-powered tools, scammers can create fake accounts and interactions to give the illusion of credibility and popularity to their scam projects. They may even use AI-driven chatbots or virtual assistants to engage with individuals, promote fake tokens, offer investment advice, or provide high-yield investment opportunities. Scammers are also using AI in “pig butchering” scams, where AI instances befriend vulnerable individuals before scamming them.
Hot Take
The development of an AI system to detect and expose cryptocurrency giveaway scams on Twitter is a significant step in combating fraud in the crypto space. However, the high number of active spam accounts indicates the need for continued efforts to detect and prevent the dissemination of scams on social media platforms. As scammers adapt and use AI technology to refine their methods, it becomes crucial for researchers, platforms, and users to stay vigilant and collaborate in the fight against crypto scams.
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