Elliptic Report Reveals That AI-Powered Crypto Crimes is Just in Its Early Stage

The introduction of AI has opened up new possibilities for criminals to use advanced techniques to achieve their aims. Elliptic's recent report highlights Artificial Intelligence (AI) as a tool for advanced crypto crimes.

These crimes range from deepfake scams to advanced crimes like state-sponsored cyber attacks. The report alsonoted an advertisement displayed on the dark web promoting an unethical generative pre-trained transformer (GPT).

This advertisement claims that artificial intelligence has two faces, just like humans. So, it implies that a new wave of advanced crime is just beginning.

AI-Powered Crypto Crimes Still in Its Early Stages

In addition, the report highlighted a WormGPT advertisement urging users to embrace the dark side of code.According to the Ad, on the dark web, rules cease to exist, and the only limit is your imagination. Additionally, it stated that users can navigate the shadows of cyberspace together.

Furthermore, Elliptic revealed deepfake Elon Musk videos used for fraudulent purposes. Similarly, deepfakes of former Singaporean Prime Minister Lee Hsien Loong are displayed to promote fraudulent activities.

Even Ripple's CEO Brad Garlinghouse has had his fair share of struggles with these deepfakes aiming to deceive followers.Notably, Ripple's CTO David Schwartz warned the public after the victory in July 2023 that scammers would capitalize on the outcome.

According to Schwartz, these scammers will create fake airdrop campaigns hoping to steal crypto from unsuspecting individuals.So, crypto giveaways and token doubling scams are rising through the use of these deepfake videos of crypto CEOs and influential people.

United States Raises Alarm over North Korean Criminal Activities Using AI

In another report, U.S. Deputy National Security Advisor for Cyber and Emerging Technologies Anne Neuberger addressed the rising AI-crime wave.

The report claims that AI is used for more advanced malicious purposes than regular scams. So, she believes that North Korea and other state criminal actors are adopting these AI models.

These criminals use these models to create malicious software that also identifies systems that are vulnerable to attacks.Further, the report showed how AI is abused in dark web spaces. Notably, there is rising interest among these dark web users in using AI to reverse-engineer crypto wallet seed phrases.

They are also seeking means to bypass authentication for services like OnlyFans. These criminals hope to use image-dressing manipulation services such as DeepNude to deceive OnlyFans subscribers.

However, as the dark web activity spikes, the chances of encountering law enforcement agencies also increase.For instance, the recent arrest of a 23-year-old dark web market operator in New York on May 18 is a related case.

The man known as Pharaoh operated a dark web narcotics ring, making a profit of $100 million from the crime. Impressively, the FBI backtracked his crypto transfers to reveal this crime.

Further investigations revealed his real name as Rui-Siang Lin, which led to his arrest at New York's John F. Kennedy Airport on May 18.The Manhattan United States Attorney's office wrote in a statement that Lin operated Incognito Market for nearly four years. This platform was a narcotic sales base raking in millions of dollars in personal profit.

So, Lin faces criminal charges for taking part in a criminal enterprise, narcotics conspiracy, and money laundering.Consequently, if convicted, he faces the possibility of a life sentence as the maximum punishment. Hopefully, this will serve as a deterrent for other criminal elements.

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