What are AI bots?
AI bots are software programs that automate and continually refine cyberattacks on cryptocurrencies, making them more dangerous than traditional hacking methods. At the core of today’s AI cybercrime are these bots – sophisticated tools capable of analyzing vast amounts of data, making autonomous decisions, and performing complex tasks without human intervention.
While AI bots have revolutionized numerous industries such as finance, healthcare, and customer support, they have also become a powerful weapon in the hands of cybercriminals, especially when it comes to the world of cryptocurrencies. Unlike “classic” hackers, who depend on manual labor and technical knowledge, AI bots can fully automate attacks, quickly adapt to new security measures, and continuously improve their tactics.
The biggest threat that AI bots bring lies in their ability to scale attacks. While a single hacker can target a limited number of users or platforms, AI bots can launch thousands of sophisticated attacks simultaneously, learning from every failure. The speed with which they analyze blockchain transactions, smart contracts, and crypto wallets allows them to find vulnerabilities in just a few minutes.
An example of such a threat was recorded in October 2024, when the X account of Andy Ayrey, the developer of the AI bot Truth Terminal, was compromised. Hackers used his account to promote the fake memecoin Infinite Backrooms (IB), which reached a market value of $25 million in just 45 minutes, and the scammers withdrew with over $600,000.
Source: cointelegraph
How can AI bots steal cryptocurrencies?
AI bots today aren’t just automating crypto scams — they’re getting smarter, more accurate, and increasingly difficult to identify. Thanks to artificial intelligence, scammers now have access to tools that can analyze, manipulate, and attack cryptocurrency users in an instant in ways that were almost unimaginable a few years ago.
- AI phishing bots
Phishing attacks are not new to the world of crypto, but AI has taken them to a whole new level. Instead of obvious, poorly written emails, today’s AI bots generate personalized messages that perfectly mimic the communication of legitimate platforms like Coinbase or MetaMask. They use data from leaked databases, social networks and even blockchains to create convincing scams. For example, in early 2024, an AI phishing campaign damaged Coinbase users for almost $65 million. A similar case occurred when a fake airdrop of OpenAI tokens, using a fake page resembling a real one, emptied the cryptocurrencies of users who had linked their wallets.
Some bots go a step further – they use AI chat interfaces to impersonate customer support and convince victims to reveal private keys or 2FA codes to them “for verification”. Combined with malicious software like Mars Stealer, which can steal data from more than 40 different wallet extensions and apps, users can lose funds without a single warning.
- Bots to exploit vulnerabilities
Smart contracts often contain security flaws, and AI bots are finding them faster than ever. They continuously scan blockchain networks like Ethereum and BNB Smart Chain for new, less secured DeFi projects. As soon as they detect an error, they exploit it automatically, often within a few minutes. Research has shown that AI chatbots like GPT-3 can analyze code and find vulnerabilities, such as those in the “withdraw” function, which was the cause of the attack on the Fei Protocol – an incident that resulted in a loss of $80 million. - AI-enhanced brute-force attacks
Once upon a time, brute-force attacks took time and strength, but with the help of AI, they are becoming terrifyingly effective. By analyzing previous password leaks, these bots find patterns and easily guess weaker passwords and seed phrases. Research from 2024 found that less secure desktop wallets like Sparow and Bither become easy targets if users don’t use passwords complex enough. - Deepfake scams
Imagine watching a video of a well-known crypto influencer or even the CEO of a platform inviting you to invest – while actually watching an AI copy. AI generates realistic videos and voice messages, which can easily mislead even experienced investors. By using deepfake technology, fraudsters manipulate identities and convincingly promote fake projects. - Botnets on social networks
On platforms like X and Telegram, entire networks of AI bots are spreading crypto scams at high speed. Botnets like “Fox8” use generative AI to create hundreds of promotional messages and responses in real-time. In one case, a fake crypto giveaway that used Elon Musk’s deepfake video tricked users into sending funds to scammers.
Source: cointelegraph
Automated trading bot scams
In the world of cryptocurrency, “AI” has become a word that is increasingly used to attract investors – especially when it comes to automated trading bots. While there are legitimate tools that use AI to analyze the market, scammers often take advantage of the hype around AI to cover up shady projects or classic Ponzi schemes.
One of the most obvious examples is the YieldTrust.ai platform, which promised a whopping 2.2% returns per day in 2023 thanks to an “AI bot”. In the end, regulators from several US states discovered that the AI bot did not exist at all – it was a simple scam that only used technological jargon to attract investment. Although the platform was shut down, many investors were left without their money, seduced by professional marketing and false promises.
Even when an automated trading bot does exist, its effectiveness is often far below what is advertised. The analytical firm Arkham Intelligence described the case of a so-called “arbitrage bot” that used a $200 million flash loan in one operation to carry out a series of complex transactions — the result? A profit of only $3.24.
Many scams work by taking your payment, making a few random transactions (if they make them at all), and then offering excuses when you try to withdraw your money. In addition, they use AI bots on social networks to fake positive reviews and create the illusion of success – constantly posting “wins”.
On the more technical side, there are also real bots used by hackers – such as front-running bots in the DeFi world, which infiltrate transactions and steal value through sandwich attacks, or flash loan bots that take advantage of temporary price differences and vulnerable smart contracts. These tools are rarely advertised to end users – they are intended for outright theft and require a high level of technical knowledge.
Theoretically, AI could improve these bots by optimizing tactics and adapting to market conditions faster. But even the most advanced AI cannot guarantee a win – the cryptocurrency market is extremely unpredictable. And the risk for users is real: if the trading algorithm has a bug or is maliciously programmed, it can drain your account in seconds. There have been cases where “wild” bots have caused sudden price drops or sucked liquidity out of pools, leaving investors with huge losses due to the so-called slippage effect.
Source: cointelegraph
How does AI fuel cybercrime?
Artificial intelligence not only helps hackers optimize existing attacks, but it actually “teaches” a new generation of cybercriminals how to break through crypto platforms – even if they don’t have technical skills. Thanks to AI tools, phishing campaigns and malware attacks have become more massive, sophisticated, and significantly more difficult to detect.
One of the most dangerous trends is the development of AI-generated malware — malicious software programs that use AI to adapt and evade detection. Of particular concern is a conceptual example from 2023 called BlackMamba. It is a polymorphic keylogger that uses a language model similar to ChatGPT to rewrite its code on its own every time it is launched. Each new instance is different, making it almost invisible to antivirus systems and attack detection tools.
In tests, BlackMamba was able to bypass the industry-leading endpoint protection system, while silently logging user inputs — including crypto exchange passwords and wallet recovery phrases. Although it is a laboratory demonstration, the threat is real: criminals are already experimenting with AI to create “mutating” viruses that are significantly more advanced than classic threats.
The AI also allows scammers to take advantage of brands of popular tools to spread malware. There have been numerous cases of fake ChatGPT applications that, instead of a smart assistant, install a virus to steal crypto. For example, users are redirected to fake pages with a “Download for Windows” button, which actually downloads malware designed to empty digital wallets.
Even more dangerous is the fact that AI lowers the technical barrier to entering the world of hacking. In the past, criminals had to have at least basic programming knowledge to create phishing sites or viruses. Today, tools like WormGPT and FraudGPT are available on dark web forums — illegal AI chatbots that generate phishing emails, malware code, and hacker instructions on demand. With a paid subscription, even completely inexperienced attackers can create convincing scams, write their own malware, or scan applications for vulnerabilities.
AI, therefore, not only amplifies existing threats – but makes them accessible to everyone.
Source: cointelegraph
How to protect your cryptocurrencies?
With increasingly sophisticated AI-powered threats, protecting digital assets is no longer an option — it has become a necessity. Automated scams, deepfake videos, and AI bots that scan for vulnerabilities are constantly attacking users of the crypto space. Here are some key steps you can take to protect yourself:
Use a hardware wallet: Most AI malware and phishing attacks target “hot” wallets connected to the internet. By using hardware wallets like Ledger or Trezor, your private keys remain offline, making them virtually inaccessible to hackers and malicious bots. During the collapse of FTX in 2022, it was users with hardware wallets who avoided the huge losses suffered by those with funds on centralized exchanges.
Enable multi-factor authentication (MFA) and use strong passwords: AI bots use machine learning to crack weak passwords, analyzing patterns from previous data breaches. That’s why it’s crucial to use complex passwords and activate MFA through apps like Google Authenticator or Authy. Avoid MFA via SMS, as attackers often use “SIM swap” attacks to circumvent such protection.
Be wary of AI-generated phishing messages: Today’s phishing messages, thanks to AI, are almost indistinguishable from legitimate emails and customer support messages. Never click on suspicious links, always manually check URLs, and never — but never — share your seed or private key, even if the message seems completely convincing.
Verify identities before you send funds: AI deepfake technology can create highly convincing videos and audio messages that mimic celebrities in the crypto industry — or even your contacts. If someone asks you for funds via video or audio message, be sure to verify their identity through another communication channel.
Stay informed: AI threats are evolving rapidly, so it’s crucial to stay up-to-date on the news.
The crypto world offers great opportunities, but also great risks — especially in the era of AI. With the right approach to security, it is possible to enjoy the benefits of technology without becoming a target of attacks.
Source: cointelegraph
The Future of AI and Crypto Security
As AI-powered threats in the crypto space evolve more rapidly, our defenses must be just as fast. AI-powered proactive security solutions are becoming essential for protecting digital assets from increasingly sophisticated attacks.
In the future, we can expect the role of AI in cybercrime to only grow. Advanced AI systems are already automating complex attacks — from deepfake videos imitating celebrities, to real-time smart contract exploits and highly targeted phishing scams. These attacks will become increasingly difficult to detect and stop using traditional methods.
Fortunately, the same technology used for attack — can also be used for defense. Security platforms like CertiK already use advanced machine learning models to analyze millions of blockchain transactions every day, detecting suspicious behaviors in real-time. As threats become smarter, such systems become indispensable in preventing major breakouts, minimizing financial losses, and maintaining confidence in cryptocurrency markets.
Ultimately, the future of security in crypto will depend on collaboration — not only between platforms and users, but also between exchanges, blockchain projects, security companies, and regulators. Only by joining forces and using AI to anticipate threats can we protect the ecosystem. While AI attacks will become more sophisticated, it is this same technology that can become our strongest ally — provided we stay informed, proactive, and adaptable.
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