Sophisticated CryptoRom Scams Exploit AI Tools to Target Crypto Community
Crypto scams have now taken a romantic twist, leading to the emergence of a sub-category called CryptoRom scams.
As the name suggests, these scams involve malicious actors initiating and nurturing romantic relationships with victims before launching attacks on their crypto assets. Recent findings from Sophos, a leading cybersecurity firm, shed light on this alarming trend.
Leveraging Artificial Intelligence (AI) tools like ChatGPT, these malefactors circumvent the security measures put in place by tech giants like Apple and Google.
This new wave of scams is particularly targeting members of the crypto community, amplifying the risks faced by enthusiasts.
The Pig-Butchering MethodTraditionally, pig-butchering scams have been employed to lure victims into investing in cryptocurrencies. These scams involve building trust with potential victims, eventually convincing them to invest their funds.
Once victims' digital wallets are sufficiently funded, scammers gain unauthorized access, siphoning off the accumulated funds.
A variation of this scheme, CryptoRom scams, has evolved to exploit human emotions more deviously. Here, scammers develop intimate connections with their targets, fostering a sense of trust and emotional involvement before making their move to plunder savings.
Sophos' threat intelligence unit, X-Ops, found the use of AI chat tools, potentially ChatGPT, in CryptoRom scams when a victim reached out for help.
The victim had been lured through a language-sharing app that was masked as a dating platform. Subsequently, communication was shifted to WhatsApp, where the victim became suspicious upon receiving a lengthy message exhibiting signs of being generated by an AI language model.
A Threat Beyond Emotional ManipulationThe evolution of these scams goes beyond crafting emotionally manipulative messages. Instead of direct wallet breaches, CryptoRom scammers are resorting to creating counterfeit apps that resemble legitimate crypto-related applications.
AI tools are then harnessed to maintain compelling conversations with victims, making the scam more convincing. Sophos identified seven malicious apps distributed through Apple's App Store and Google Play Store, all designed to ensnare unwary users.
Sean Gallagher, Principal Threat Researcher at Sophos, highlighted the adaptability and persistence of these malicious actors. Notably, the identified apps can be easily repurposed for future scams.
According to the FBI's IC3, crypto-related scams have seen a staggering 183 percent increase from 2021 to 2022, with losses amounting to $2.57 billion.While Apple and Google have been alerted to the presence of these apps, the dynamic nature of such scams implies that new variants may resurface with novel tactics.
As Gallagher notes, the scammers might venture into innovative methods of initial and double extortion, further compounding the risks for potential victims. The exponential rise in cryptocurrency-related fraud cases is deeply concerning.
Amid this backdrop, the convergence of AI and scamming techniques is exacerbating the situation. Crypto exchanges and Web3-related firms are also feeling the brunt of these new tactics, with scammers utilizing AI deepfakes to bypass security measures.
This strategy enables them to target crypto investors with a higher chance of success, posing a significant threat to user funds.
A report by blockchain research firm CertiK paints a grim picture of the ongoing losses due to crypto exploits. In April of this year alone, a staggering $103 million was stolen through various crypto crimes.
Notably, exit scams and flash loans emerged as the primary sources of stolen funds. Estimates suggest that over $429.7 million have been pilfered by hackers and scammers in the past four months of 2023.
The figures highlight the urgency to strengthen security measures and raise awareness about evolving scams.
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