The Rising Threat of AI-Powered Crypto Scams: A Perspective from Quantstamp Co-founder

JJohn September 5, 2023 5:16 AM

Artificial intelligence is aiding cybercriminals in executing more sophisticated and convincing scams, posing a significant threat to crypto organizations. Quantstamp co-founder Richard Ma warns of the crucial risks and discusses potential protective measures against AI-powered attacks.

The rise of AI-enhanced scams

Artificial intelligence is rapidly evolving, empowering scammers with tools that facilitate highly advanced attacks, as warned by Richard Ma, co-founder of Web3 security firm Quantstamp. Ma emphasizes that AI is aiding social engineering attackers in becoming increasingly convincing, thus successfully executing their scams. He shared an instance involving a client, where the attacker impersonated the chief technology officer of the target firm, thereby adding a layer of complexity to the scam.

The most alarming threat introduced by AI, according to Ma, is the staggering scale of scam operations. Attackers can conduct social engineering attacks and advanced scams across a multitude of organizations with minimal human involvement, leveraging automated AI systems. In the crypto world, where databases contain the contact details of key individuals from each project, hackers can exploit this information using AI to launch distinct scams.

Safeguarding against AI-enhanced scams

Despite the daunting scale and complexity of AI-driven scams, Ma provides practical advice for individuals and organizations seeking protection. Notably, avoiding the transmission of sensitive data via email or text is critical. Instead, organizations should localize crucial data communication to internal channels like Slack. Always double-checking information and investing in anti-phishing software that can deter automated emails from bots and AI are further protective measures companies can adopt.

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