Blockchain Security Firms Caution Crypto Community about Advanced AI Scams in 2024
Experts are warning crypto projects and investors about the growing threat of more sophisticated AI-powered scams in 2024. While scam and hack-related losses have decreased from $4 billion in 2022 to $1.7 billion in 2023, it is crucial to remain vigilant as scams evolve.
Phishing Attacks on the Rise
Phishing attacks are becoming increasingly sophisticated, targeting not only individual users but also corporate systems. A recent example is the Ledger Connect exploit on December 14, which demonstrates the advanced nature of these attacks. Generative AI is expected to play a key role in making phishing scams more convincing by automating operations and creating realistic fake calls, videos, and messages tailored to crypto users.
Cross-Chain Bridges Vulnerabilities
Cross-chain bridges are likely to be a focus for attackers in 2024 as the sector adopts more cross-chain solutions. These bridges have already been exploited by hackers, with the Multichain hack in July 2023 resulting in a loss of $126 million. Vulnerabilities arising from interactions between different chains make these bridges attractive targets for attackers.
AI-generated ‘Deep Fakes’ Threat
Jenny Peng, a research analyst from 0xScope, warns that AI can be used to generate realistic “deep fakes,” posing a threat to crypto users. The Bitcoin-based BRC-20 ecosystem is expected to receive increased attention from hackers in 2024 due to a relative lack of developments in security. The double-spend exploit targeting the BRC-20 UniSat wallet in early 2023 serves as evidence that the ecosystem needs to rapidly improve its infrastructure.
Rising Sophistication of Scammers
Phil Larratt, Director of Investigations at Chainalysis, predicts that illicit actors will become more sophisticated in their tactics and techniques. He expects scammers to adopt privacy coins, bridges, mixers, and obfuscation tools. To counteract these evolving threats, intensive law enforcement investigations, advanced fraud protection programs, and partnerships between the public and private sectors are essential.
Hot Take: Crypto Community Must Stay Vigilant Against Advanced AI Scams in 2024
As we enter 2024, blockchain security firms are warning the crypto community about the increasing threat of advanced AI-powered scams. While scam and hack-related losses have decreased, the nature of scams is evolving, requiring heightened vigilance. Phishing attacks are becoming more sophisticated, targeting both individual users and corporate systems. Cross-chain bridges have been exploited by hackers and may continue to be attractive targets for attackers. Additionally, AI-generated deep fakes pose a significant threat to crypto users. It is crucial for the community to stay informed and take necessary precautions to protect themselves against these evolving threats.
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