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Scam Alert: New AI Scams About to Hit Crypto Industry En Masse

source-logo  u.today 16 February 2024 13:52, UTC

The technology of artificial intelligence (AI) has reached a new pinnacle, with a recent announcement from Sam Altman about AI's capability to generate hyper-realistic videos. These advancements, while impressive, carry a significant risk, especially in the cryptocurrency industry. An impending wave of sophisticated AI-generated video scams could potentially defraud unsuspecting users of millions, if not billions, of dollars.

These AI scams could manifest as falsified endorsements from public figures or as fake "how-to" guides for crypto investments, all tailored to be alarmingly convincing due to minor artifacts that only the trained eye could discern. As such realistic fabrications increase, distinguishing between genuine advice and scams becomes increasingly challenging.

However, there are proactive measures that individuals and the community at large can take to safeguard against these AI-generated scams:

Digital literacy and education

Awareness is the first line of defense. Crypto investors must be educated about the potential of AI scams. Knowledge of the existence of such sophisticated frauds can encourage vigilance. Educational campaigns can be initiated by cryptocurrency exchanges, wallets and influencers to inform users of the signs that suggest a video or an endorsement might be AI-generated.

Multi-factor authentication (MFA) for transactions

Ensure that any investment platform or wallet uses MFA. This means that even if a scam convinces someone to act, the transaction process's security layers could provide a moment for reconsideration and verification.

Blockchain-based verification systems

Developing blockchain-based content verification systems where official communications and videos from legitimate crypto organizations and influencers can be immutably recorded and verified against. If a piece of content does not have a verified blockchain entry, it could be an indication of fraud.

Community reporting and AI monitoring

Platforms can employ AI to detect and flag potential AI-generated content, while community reporting mechanisms can help weed out scams. Users should be encouraged to report suspicious content, which can then be examined and, if necessary, removed and flagged across platforms.