As artificial intelligence (AI) advances by leaps and bounds, its potential is being exploited not only by legitimate players, but also by criminals in the cryptocurrency world. Chainalysis, a blockchain analytics platform, is ringing the bell about the emergence of a new wave of AI-based crime in the near future.
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Chainalysis warns of the potential use of AI for malicious purposes
The advent of artificial intelligence (AI) raises concerns about its potential impact on crypto crime. Eric Jardine, research manager on cybercrime at Chainalysis recently shared his thoughts on emerging trends in blockchain crime and on how AI could influence them.
Eric Jardine pointed out that AI and in particular large language models (LLM), could have a significant impact on various categories of blockchain-related crime. If these models can be used to strengthen the security of DeFi protocols by identifying flaws in the smart contracts they can just as easily be hijacked by malicious actors to exploit the same vulnerabilities.
The DeFi sector, a prime target for hackers, saw a drop in cryptocurrency thefts in 2023 compared with 2022, from $3.1 billion to $1.1 billion. However, the impact of AI on the balance of power between protocols and their attackers remains uncertain and could fluctuate over time.
Moreover, a new AI able to generate false documents was recently discovered. For just $15, this site produces fake driver’s licenses and passports, which fraudsters then used to fool the KYC controls of crypto exchange platforms.. This worrying trend underlines the ease with which AI can be hijacked for criminal purposes.
AI amplifies romance scams!
Beyond the DeFi sphere, AI is raising concerns about romance scams, also known as ” pig butchering” . According to the researcher, a great language model could be a devastating tool in the hands of unscrupulous swindlers weaving artificial relationships to extort their victims.
Although a revolutionary technology, artificial intelligence poses a growing threat in the wrong hands. Its potential as a new tool for cybercriminals should not be overlooked. To protect your cryptos against these emerging dangers, it’s crucial to adopt the best security practices, such as using a cold wallet like those offered by our partner DCent Wallet, which supports over 3,000 cryptocurrencies and 50 blockchains. Stay safe and continue to follow us to keep abreast of new types of hacks and other threats.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
