Artificial intelligence (AI) is poised to revolutionize various industries, including the realm of crypto-based crime, according to experts at the blockchain intelligence platform Chainalysis. While AI holds tremendous potential for positive applications, it also presents new challenges and risks in the world of illicit activities.
In a recent private video webinar, Eric Jardine, the Lead Researcher of Cybercrimes at Chainalysis, discussed the growing and shrinking trends in illegal blockchain activities in 2023 and offered insights into the tactics that criminals are likely to adopt in the future.
One significant concern is the potential use of large language models (LLMs) in criminal activities. Jardine highlighted that AI models could be employed to conduct code audits, enhancing the security of decentralized finance (DeFi) platforms. However, on the flip side, these models could also be exploited by malicious actors to identify vulnerabilities in smart contracts, enabling theft and fraud.
DeFi has been a favored target for cryptocurrency theft, with hackers exploiting weaknesses in code, obtaining private keys, and manipulating prices to steal assets. While formal audits have become a standard practice in the blockchain industry, their effectiveness in preventing hacks is not foolproof. The integration of AI into the equation further complicates the situation, as its impact on smart contracts and their potential for exploitation remains uncertain.
Aside from DeFi, AI’s impact could extend to other forms of crypto-related crimes, such as romance scams. In these scams, fraudsters establish relationships through false pretenses and exploit the victims for financial gain. Jardine mentioned that large language models with infinite patience and creativity could be used to devastating effect by criminals in romance scams.
Remarkably, despite a decline in total scam volume from $6.5 billion to $4.6 billion, romance scammers in the crypto space nearly doubled their revenue in 2023 compared to 2022. The average payment associated with romance scams amounted to $4,593, although victims often made multiple payments, resulting in even greater monetary losses.
It is important to note that while the absolute volume of stolen DeFi funds decreased from $3.1 billion in 2022 to $1.1 billion in 2023, the number of incidents also saw a decline. Additionally, the percentage of illicit activity in all crypto transactions fell to just 0.34% of blockchain activity in 2023.
As the intersection of AI and cryptocurrencies continues to evolve, it will be crucial for cybersecurity experts, blockchain developers, and law enforcement agencies to stay one step ahead of the criminals. Only through proactive measures, extensive research, and collaboration can we mitigate the risks posed by sophisticated AI-driven crypto crimes.
FAQ
What is decentralized finance (DeFi)?
Decentralized finance, often referred to as DeFi, is a term that encompasses various financial applications and services that are built on blockchain technology. These platforms aim to provide alternatives to traditional centralized financial systems, allowing for greater transparency, accessibility, and financial inclusion.
What are large language models (LLMs)?
Large language models, or LLMs, are highly advanced artificial intelligence models capable of understanding and generating human-like text. These models are trained on massive amounts of data and are designed to mimic natural language processing and understanding.
How can AI be utilized in romance scams?
AI, particularly large language models, can play a role in romance scams by allowing fraudsters to create more convincing and personalized personas. These models can generate text responses, manipulate emotions, and sustain the illusion of a genuine relationship, leading victims to fall prey to financial manipulation.
Sources:
– Chainalysis.com
– Twitter.com
What is decentralized finance (DeFi)?
Decentralized finance, often referred to as DeFi, is a term that encompasses various financial applications and services that are built on blockchain technology. These platforms aim to provide alternatives to traditional centralized financial systems, allowing for greater transparency, accessibility, and financial inclusion.
What are large language models (LLMs)?
Large language models, or LLMs, are highly advanced artificial intelligence models capable of understanding and generating human-like text. These models are trained on massive amounts of data and are designed to mimic natural language processing and understanding.
How can AI be utilized in romance scams?
AI, particularly large language models, can play a role in romance scams by allowing fraudsters to create more convincing and personalized personas. These models can generate text responses, manipulate emotions, and sustain the illusion of a genuine relationship, leading victims to fall prey to financial manipulation.
For more information, you can visit the following sources:
– Chainalysis.com
– Twitter.com
The source of the article is from the blog yanoticias.es