Scams activities are increasing rapidly in the crypto space, every year we see a net increase in crypto scams, exploiting both technological advancements and human psychology. However the Artificial intelligence (AI) technology entered the trend of new technology in the last couple of years but scammers are actively misusing this technology. These bad actors are not only getting AI tech based suggestions to conduct new types of scams but also using new technology to wisely mislead people.
Here are the new types of scams which are increasing rapidly in the current social internet era, from which people should remain aware to easily identify the scammer or fraudsters.
Arbitrage Bot Scams
These days some wise scammers promote fake arbitrage bots on different social media platforms like X ( formerly Twitter), YouTube, instagram, Facebook, etc, & claim these bots can exploit crypto tokens price differences across different crypto exchanges & provide significant profit for the bot user.
Many new & sometimes experienced crypto investors got into the trap of these arbitrage bot scammers & are lured into executing malicious contracts in their crypto Defi apps that drain their all crypto funds.
As per some data report finding, more than 25,000 victims have lost up to $15 million due to this scam, in between 2022 to 2023. And so far these scammers are continuously engaged on YouTube-like platforms to publish videos related to these bots, in order to easily attract the crypto investors in scam traps.
Technical Support Scams
As we know that year by year new people are entering the crypto sector to invest money & gain profit.
Because of complications related to crypto wallets & related technology, fraudsters are taking advantage.
It is found that crypto fraudsters continuously monitor social media to find those crypto users who are reporting cryptocurrency wallet related issues. Scammers impersonate support personnel, offering fake recovery services to steal funds. To monitor such crypto users who are facing any kind of technical issues, scammers are using AI technology based bots to make their scam work more simple.
A report on this type of scam, involving “honey tweets” attracted over 9,000 scammers, highlighting the prevalence of this tactic.
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Pig Butchering Scams
This type of scam is very common & old but in the current Era of internet world, this scam is now changing its form to easily attract victims.
These days, these crypto scammers build trust with victims through online “VIP” investment clubs, initially offering legitimate investment advice. Once trust is established, they step toward a high level of scam. They suggest victims invest in cryptocurrencies, eventually stealing the funds. This method of crypto scam is basically done via a combination of social engineering & social media appearance to attract victims.
Fake Investment Platforms
Crypto scammers are using fake crypto investment platforms to convince the investors to invest money easily.
With the help of Artificial intelligence (AI) technology based bots, fraudsters easily create fake cryptocurrency investment platforms.
With their social media presence, they first attract the victim & then ask the users to invest Cryptocurrency on the platform with promises of high returns.
Once investments are made by the crypto investor (victim), the fake platforms disappear along with the funds.
However this type of scam was considered at professional level before 2-3 years ago, but with the use of AI chatbots, scammers can easily create codes to create an exchange webpage and get a better attractive name for their website domain name.
To attract victims more easily, these scammers use AI bots to spread positive reviews about the fake crypto investment website.
Crypto Phishing Scams
However in old days of internet era, scammers were using phishing method to steal users password & some sensitive details but nowadays sammers send emails or messages impersonating reputable cryptocurrency exchanges or wallets, prompting users to click on malicious links or provide sensitive information. This leads to unauthorized access to users’ crypto assets.
Sometimes, these scammers ask the crypto wallet users to download a new version of their wallet but they send suspicious crypto wallets which easily steal the victim’s wallet phrase back-up & take control of the wallet.
Fake Crypto Token & Fake Promise
As we know that currently the majority of the crypto entrepreneurs are trying to make Cryptocurrencies easily accessible for newbies as well as experienced crypto users. They’re making an easy environment for people to deploy their own token on crypto networks by spending a very small amount of funds.
Scammers are using these ease of token deployment without disclosing their identity to the public domain. These scammers convince investors to invest in their token, on behalf of fake promises of high returns.
In some cases it is found that scammers use testnet based tokens to scam people, which shows that people need to get crypto education first.
Protective Measures Against Crypto Scams
Verify Sources
Crypto investors should Verify sources to confirm the legitimacy of investment opportunities and support services and should always follow the official social media channels to contact support teams for any type of technical issues or fund loss incident.
Beware of High Returns Investment
People should remain always in high alert mode and be cautious of promises of guaranteed or unusually high returns, as they are often a part of scams.
Secure Sensitivity Information
Hower it is basic that people should not share personal sensitive information in public domain but for crypto investors it is advised not to share crypto wallet’s private keys, seed phrases, or sensitive information with anyone.
Get Crypto Education
Before getting into crypto investment, people are advised to understand the basics of cryptocurrencies & also history from the technical point of view.
Such types of basic crypto education helps people to stay informed about the scam tactics and learn how to recognize red flags.
Report Suspicious Activity
It should be a duty of every crypto investor to report about the scams or any kind of suspicious activity to help other people to easily know about the potential scam. If we as a responsible person will report to relevant authorities then also it may help other people to help to prevent from being targeted.
Read also: Tether CEO Says Big Accounting Firms Shying Away from Tether
https://bitcoinik.com/beware-of-6-emerging-new-types-of-crypto-scams-amid-increasing-misuse-of-artificial-intelligence-ai-technology/feed/
https://bitcoinik.com/beware-of-6-emerging-new-types-of-crypto-scams-amid-increasing-misuse-of-artificial-intelligence-ai-technology/feed/
