AI Deepfake Scams Target Ripple (XRP) in Emerging Crypto Threats Report by Elliptic

• Blockchain intelligence firm Elliptic has published a report addressing the growing threats posed by artificial intelligence (AI) in the cryptocurrency ecosystem.
• The report outlines five distinct types of AI-enabled crimes, including deepfake scams and state-sponsored cyberattacks, underlining that these threats are in their nascent stages.
• The analysis emphasizes the rapid adoption of AI by malicious actors to facilitate various forms of crypto-related fraud.

Discover the emerging risks posed by AI in the crypto world and how they are revolutionizing criminal activities in this insightful report by Elliptic.

AI Deepfake Scams on the Rise

While AI offers transformative potential across various sectors, it also introduces significant risks. Elliptic’s report finds that cybercriminals are increasingly leveraging AI to perpetrate illicit activities within the cryptocurrency sphere.

One major concern is the use of AI to generate deepfakes — highly convincing videos and images that impersonate notable figures like celebrities, political leaders, and industry authorities, to promote fraudulent crypto projects.

“The growing trend of using AI-generated deepfake videos in crypto schemes has seen scammers illegitimately presenting themselves as crypto leaders to solicit funds from unsuspecting victims.”

Specific cases in the report highlight the use of deepfakes to mimic Ripple (XRP) and its CEO, Brad Garlinghouse, especially after the company’s legal win against the U.S. SEC in July 2023.

Other victims of deepfake scams include Elon Musk, former Singapore Prime Minister Lee Hsien Loong, and Taiwan’s Presidents Tsai Ing-wen and Lai Ching-te.

Anne Neuberger, U.S. Deputy National Security Advisor for Cyber and Emerging Technologies, has also voiced concerns over AI’s misuse. She noted that AI is being employed not only for everyday scams but also for more advanced criminal operations.

“Observations have indicated that actors from North Korea and other states are utilizing AI models to expedite the development of malicious software and identify infiltration points in systems,” stated Neuberger.

Dark Web and GPT Tokens

The prominence of AI has led to the creation of tokens themed around GPT, often marketed with exaggerated claims of high returns. While some may be genuine, Elliptic warns that many are being promoted deceptively in online trading forums, falsely suggesting affiliations with AI technologies like ChatGPT.

The report also describes how dark web forums are discussing the use of AI models to reverse-engineer cryptocurrency wallet seed phrases and circumvent security measures for various services.

“In various dark web cybercrime forums, Elliptic identified discussions on leveraging large language models to crack crypto wallet seed phrases and circumvent security protocols for services like OnlyFans.”

Elliptic cautions that although AI-related threats in the cryptocurrency sector are still developing, it is critically important to remain vigilant and proactively address these emerging risks.

Conclusion

Elliptic’s report underscores the imminent threats posed by AI in the cryptocurrency arena, highlighting the need for increased awareness and proactive measures to combat these developing forms of crime. The early detection and understanding of these AI-enabled threats could be crucial for building resilient defenses against future attacks.