What are AI bots? AI bots are self-learning software that automates and continuously refines crypto
What are AI bots?
AI bots are self-learning software that automates and continuously refines crypto cyberattacks, making them more dangerous than traditional hacking methods.
At the heart of today’s AI-driven cybercrime are AI bots — self-learning software programs designed to process vast amounts of data, make independent decisions, and execute complex tasks without human intervention. While these bots have been a game-changer in industries like finance, healthcare and customer service, they have also become a weapon for cybercriminals, particularly in the world of cryptocurrency.
Unlike traditional hacking methods, which require manual effort and technical expertise, AI bots can fully automate attacks, adapt to new cryptocurrency security measures, and even refine their tactics over time. This makes them far more effective than human hackers, who are limited by time, resources and error-prone processes.
Why are AI bots so dangerous?
The biggest threat posed by AI-driven cybercrime is scale. A single hacker attempting to breach a crypto exchange or trick users into handing over their private keys can only do so much. AI bots, however, can launch thousands of attacks simultaneously, refining their techniques as they go.
- Speed: AI bots can scan millions of blockchain transactions, smart contracts and websites within minutes, identifying weaknesses in wallets (leading to crypto wallet hacks), decentralized finance (DeFi) protocols and exchanges.
- Scalability: A human scammer may send phishing emails to a few hundred people. An AI bot can send personalized, perfectly crafted phishing emails to millions in the same time frame.
- Adaptability: Machine learning allows these bots to improve with every failed attack, making them harder to detect and block.
This ability to automate, adapt and attack at scale has led to a surge in AI-driven crypto fraud, making crypto fraud prevention more critical than ever.
In October 2024, the X account of Andy Ayrey, developer of the AI bot Truth Terminal, was compromised by hackers. The attackers used Ayrey’s account to promote a fraudulent memecoin named Infinite Backrooms (IB). The malicious campaign led to a rapid surge in IB’s market capitalization, reaching $25 million. Within 45 minutes, the perpetrators liquidated their holdings, securing over $600,000.
How AI-powered bots can steal cryptocurrency assets
AI-powered bots aren’t just automating crypto scams — they’re becoming smarter, more targeted and increasingly hard to spot.
Here are some of the most dangerous types of AI-driven scams currently being used to steal cryptocurrency assets:
1. AI-powered phishing bots
Phishing attacks are nothing new in crypto, but AI has turned them into a far bigger threat. Instead of sloppy emails full of mistakes, today’s AI bots create personalized messages that look exactly like real communications from platforms such as Coinbase or MetaMask. They gather personal information from leaked databases, social media and even blockchain records, making their scams extremely convincing.
For instance, in early 2024, an AI-driven phishing attack targeted Coinbase users by sending emails about fake cryptocurrency security alerts, ultimately tricking users out of nearly $65 million.
Also, after OpenAI launched GPT-4, scammers created a fake OpenAI token airdrop site to exploit the hype. They sent emails and X posts luring users to “claim” a bogus token — the phishing page closely mirrored OpenAI’s real site. Victims who took the bait and connected their wallets had all their crypto assets drained automatically.
Unlike old-school phishing, these AI-enhanced scams are polished and targeted, often free of the typos or clumsy wording that is used to give away a phishing scam. Some even deploy AI chatbots posing as customer support representatives for exchanges or wallets, tricking users into divulging private keys or two-factor authentication (2FA) codes under the guise of “verification.”
In 2022, some malware specifically targeted browser-based wallets like MetaMask: a strain called Mars Stealer could sniff out private keys for over 40 different wallet browser extensions and 2FA apps, draining any funds it found. Such malware often spreads via phishing links, fake software downloads or pirated crypto tools.
Once inside your system, it might monitor your clipboard (to swap in the attacker’s address when you copy-paste a wallet address), log your keystrokes, or export your seed phrase files — all without obvious signs.
2. AI-powered exploit-scanning bots
Smart contract vulnerabilities are a hacker’s goldmine, and AI bots are taking advantage faster than ever. These bots continuously scan platforms like Ethereum or BNB Smart Chain, hunting for flaws in newly deployed DeFi projects. As soon as they detect an issue, they exploit it…
cointelegraph.com