AI Security Becomes Critical as Fraud Surges to $9.9B in 2024

• Chainalysis reports crypto scams surged 40% in 2024, hitting $9.9 billion in losses.
• AI tools like CryptoGuard help combat pig butchering scams that target unsuspecting users.
• ChainGPT’s Duggan emphasizes the importance of combining AI and human security measures.

A new Chainalysis report reveals an alarming surge in cryptocurrency scams during 2024, with pig butchering scams recording a 40% increase in revenue from illicit activities. The number of crypto deposits into these scams increased by 210%, indicating an expanding victim pool.

The report highlights how scammers have changed their tactics, moving beyond traditional romance scams to target the unemployed with fake work-from-home opportunities. These schemes, while yielding smaller amounts, offer quicker turnaround times.

Scammers have exploited platforms like Huione Guarantee, which has processed $70 billion in crypto since 2021, to facilitate illicit activities. A particularly alarming trend is the 1,900% increase in AI service vendor revenue on these platforms, enabling scammers to generate hyper-realistic deceptive content for impersonation scams.

In response to these growing threats, ChainGPT’s Marketing Manager Christopher Duggan outlined how AI technology can strengthen crypto security during a recent Voice of Web3 interview. Duggan emphasized the importance of AI-powered security tools like CryptoGuard in preventing scams. He noted that even experienced crypto professionals can fall victim to sophisticated attacks. “The more known you get in this industry, the more money you make or work in the industry, the more you’re targeted in a sophisticated way,” Duggan explained.

CryptoGuard, an AI-powered security extension, functions as a preventive measure by scanning wallets for potentially malicious tokens and NFTs that could trigger wallet drains when interacted with. The tool also alerts users when they attempt to connect their wallets to fraudulent versions of legitimate platforms like Uniswap, similar to browser security warnings.

Related: WLFI Co-founder X Account Hacked, Fake Memecoin Promoted 

This technology also enhances security during transaction signing by detecting and blocking known malicious transactions that contain wallet-draining mechanisms. This feature becomes particularly relevant as Chainalysis reports that crypto scams collected at least $9.9 billion from victims in 2024, with pig butchering schemes seeing a 210% increase in victim deposits.

Duggan noted that scam prevention requires both AI assistance and human oversight, as complete automation could lead to vulnerabilities. The integration of AI in security measures aims to create a balanced approach where technology augments human judgment rather than replacing it entirely.

The post AI Security Becomes Critical as Fraud Surges to $9.9B in 2024 appeared first on Cryptotale.