A sophisticated phishing threat actor exploits artificial intelligence (AI) to target numerous cryptocurrency brands. According to a discovery by IT security firm Netcraft, this malicious entity has created 17,000 phishing lure sites hosted on an otherwise legitimate developer platform GitBook. So far, the lure sites have impersonated over 30 major cryptocurrency platforms, including Coinbase, Crypto.com, MetaMask, and others.
Bad Actors Create Undetectable Contents
The attack begins when the victim visits a fake website created by AI. These websites trick people and prompt them to take certain actions, like visiting other websites. The attacker often spreads these fake website links in the comment sections of real websites.
The main goal of these phishing campaigns is to steal users’ login details and two-factor authentication (2FA) codes. Once the attackers have this important information, they can access users’ crypto accounts without permission. As such, this allows them to take the money in the accounts and potentially use the compromised accounts for more bad actions, causing victims to lose a lot of funds.
The AI-generated content on these phishing sites looks very real, making it hard for users to tell if the site is legit or fake. Educating users about the changing methods used by phishing attackers is crucial for security. By informing people about the risks and showing them how to spot and avoid phishing attempts, the cryptocurrency community can better defend itself against these complex attacks.
Crypto Stealing AI Bot Discovered on GitHub
In April, a pseudonymous security researcher, dm557, revealed a nefarious project on GitHub, highlighting the presence of an AI bot designed to steal crypto assets. dm557 discovered a “checkrug.py” file within the AI bot, containing an encrypted binary script designed to decrypt data and transmit private keys.
Evilcos, the pseudonymous founder of SlowMist, a well-known blockchain security firm, confirmed dm557’s findings and explained the bot’s operation. He affirmed the presence of a backdoor code within the bot, allowing it to steal users’ private keys. As such, Evilcos warned the crypto community to be cautious when encountering complex code, as it could hide malicious intent.
He emphasized that code should be readable and understandable in the open-source world of cryptocurrency. Complex or “garbled” code could indicate something fishy.
AI is a Venue for Bad Actors: CFTC
At the beginning of the year, the United States Commodity and Futures Trading Commission (CFTC) warned investors against artificial intelligence scams targeting crypto investors by promising unrealistic gains via crypto arbitrage algorithms.
The AI industry hype has gone out of control, and the CFTC has asked investors to invest their money wisely and never fall into the trap of unreasonable promises. “When it comes to AI, this advisory is telling investors, ‘Be wary of the hype,’ said OCEO Director Melanie Devoe.”
The CFTC also suggested investors know the risks associated with the underlying assets and consider the impact fees, spreads, and subscription costs would have on return.
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