Originally published on: October 15, 2024
Cybercriminals are back at it with an old scam rebranded to exploit the AI craze, warns blockchain security firm SlowMist. The fraudulent trading bot scheme, once known as “Uniswap Arbitrage MEV Bot,” now masquerades as the “ChatGPT Arbitrage MEV Bot” to capitalize on the current hype surrounding artificial intelligence.
According to SlowMist, scammers leverage OpenAI’s ChatGPT to make their deceitful bots appear more legitimate and alluring to unsuspecting users. By incorporating ChatGPT into the scam’s branding, they aim to instill a sense of trust and credibility in potential victims.
Promising astronomical profits through trading activities on Ethereum, the scammers entice users to deploy the bot by clicking on a malicious link on Remix, an open-source platform. Once the bot is activated, users are duped into funding the smart contract under the guise of unlocking its full potential for generating wealth.
However, as victims eagerly deposit ETH into the smart contract, their investments vanish into the scammers’ wallets through a hidden backdoor in the code. The funds are swiftly diverted to exchanges or temporary storage addresses, leaving users defrauded and disheartened.
SlowMist has identified three scammer addresses employing these tactics to siphon funds from unsuspecting victims. One address alone has managed to steal 30 Ether, valued at over $78,000, from more than 100 individuals since August. Meanwhile, two other addresses have swindled 20 Ether, totaling over $52,000, from 93 victims.
With a cunning “wide-net approach,” the scammers pilfer small amounts from numerous victims, banking on the fact that most won’t pursue legal recourse due to the time and effort it entails. This allows them to perpetuate their fraudulent activities and rebrand under new names to evade detection.
SlowMist cautions against falling prey to these scams and highlights the prevalence of fraudulent videos promoting similar schemes, particularly on platforms like YouTube. Users are advised to watch out for signs such as audio-video desync, recycled footage, and suspiciously positive comments that may indicate a scam in progress.
As the battle against fraudulent AI-powered trading bots intensifies, vigilance and awareness are crucial to protect oneself from falling victim to these nefarious schemes. Stay informed, stay cautious, and stay safe in the tumultuous world of online finance.
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