The rise of AI-driven crypto crimes marks a new era of cyber threats, with an Elliptic report exposing how advanced technologies are being exploited for deepfake scams, state-sponsored attacks, and other sophisticated illicit activities.
Dark Web Advertisement
The report cites a troubling advertisement for an unethical GPT on the dark web, which claims, “AI has two faces just like humans.” This duality is further seen in the WormGPT advertisement highlighted in the report: “Embrace the dark symphony of code, where rules cease to exist, and the only limit is your imagination. Together, we navigate the shadows of cyberspace, ready to conquer new frontiers. What’s your next move?”
Deepfake Deceptions
Elliptic revealed that deepfake videos featuring Elon Musk and former Singaporean Prime Minister Lee Hsien Loong are being used to promote fraudulent investment schemes. Doctored videos or deepfakes of notable individuals promoting investment scams have targeted the likenesses of Elon Musk, former Singaporean Prime Minister Lee Hsien Loong, and both the 7th and 8th presidents of Taiwan, Tsai Ing-wen and Lai Ching-te.
Growing Concerns and AI Misuse
According to the report, Anne Neuberger, the U.S. Deputy National Security Advisor for Cyber and Emerging Technologies, also addressed the growing concerns about AI criminality. Neuberger warned that AI is being misused for purposes other than everyday scams. Some North Korean and other nation-state and criminal actors have been observed trying to use AI models to accelerate the creation of malicious software and identify vulnerable systems.
Dark Web Activity
The report elaborates on the extent of AI’s misuse, which can be observed on dark web forums. Throughout numerous dark web cybercrime forums, Elliptic has identified chatter that explores the use of large language models (LLMs) to reverse-engineer crypto wallet seed phrases, bypass authentication for services such as OnlyFans, and provide alternatives to image-undressing manipulation services like DeepNude.
As activity on the dark web increases, so does the potential for downfall. This is evidenced by the recent arrest of a dark web market owner in New York on May 18. The 23-year-old man was charged with owning, running, and profiting from a $100 million dark web narcotics marketplace after the FBI tracked his crypto transfers.
AI-Driven Crypto Crime: Only Just Beginning
The report highlights that the misuse of AI in crypto crimes is just beginning, with potential for more sophisticated and widespread attacks in the future.
