AI Cryptocurrency Scams Surge 500%! Generative Artificial Intelligence Becomes a New Weapon for Hackers, Single-Transaction Profits Increase 4.5 Times

GateNews

2026-02-27 09:08:21

BTC4,02%

LTC4,25%

February 27 News, blockchain security firm TRM Labs released a report stating that AI cryptocurrency scams have surged by approximately 500% over the past year. The widespread adoption of generative artificial intelligence and large language models (LLMs) has enabled highly automated phishing, identity impersonation, and money laundering processes, significantly increasing the scale and speed of attacks.

The report highlights that hackers use AI to mass-produce phishing emails, fake investment websites, and highly realistic chatbots, enhancing engagement through personalized messaging, and leveraging translation tools to spread across languages. Deepfake audio and video technology is used to impersonate corporate executives or public figures, accelerating trust-building in “pig butchering” scams and romance frauds. Machine learning models can also automatically test stolen accounts, scan mnemonic phrases and private keys, and even identify smart contract vulnerabilities, enabling quick fund theft.

Recent cases underscore the rising risks. A crypto whale lost 1,459 Bitcoin and 2.05 million Litecoin—worth up to $282 million—due to social engineering attacks. U.S. law enforcement also seized over $61 million in Tether in North Carolina, with the funds linked to cross-border money laundering.

Data shows that illegal crypto transactions are projected to reach $158 billion in 2025, a 145% increase year-over-year, with about $30 billion related to scams. Chainalysis reports that AI-driven scam operations generate 4.5 times more revenue per incident than traditional scams, with daily transaction volumes nine times higher. Vectra AI disclosed a 1,210% increase in AI scam cases.

Security agencies emphasize that, in response to the escalation of AI cryptocurrency scams, defenses must also deploy automated monitoring and on-chain analysis tools. As attack lifecycles accelerate across the board, the digital asset security ecosystem faces a new wave of technological confrontation.

View Original

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Exaggeration » Korean Tax Agency Press Release Reveals Mnemonic, 6.4 Billion Won in Seized Assets Emptied Overnight

bitcoin news ethereum news Geopolitics Enforcement Actions Security Incidents

The Korean National Tax Service quickly transferred approximately $4.8 million worth of crypto assets after a mnemonic phrase in a press release was not masked, leading to a security breach. This incident is the third cryptocurrency theft in South Korea within the past three months. Experts criticize this as a reflection of law enforcement's insufficient understanding of crypto asset security and emphasize that mnemonic phrases should be strictly protected to prevent asset theft.

動區BlockTempo8m ago

User wallet information exposed! On-chain detective ZachXBT reveals Axiom employee suspected of insider trading

Daily Crypto News Enforcement Actions Security Incidents

Well-known on-chain detective ZachXBT revealed that Axiom employees at the crypto trading platform abused internal tools to spy on users' wallets and may have used this information for insider trading. Axiom has revoked the relevant access rights and stated that an investigation into the misconduct is underway, emphasizing that this does not represent the overall team values. The investigation has sparked heated discussion in the market, and some traders have profited from predicting the event.

区块客6h ago

XRP Ledger Dev Raises Alert on Fake 'Passes' Scam Targeting Wallets - U.Today

XRP news Security Incidents

Wietse Wind alerts the XRP community about scams involving fake NFTs and phishing attempts targeting wallet holders. He advises users to verify offers, avoid engagement with suspicious accounts, and underscores the importance of security practices to prevent fraud.

UToday7h ago

Bitcoin Extortion Plot Turns Violent as Fake Mailman Forces Way Into Home

bitcoin news Enforcement Actions Security Incidents

Alleged bitcoin extortion turned violent in Seattle as prosecutors say a suspect posed as a postal worker, forced entry into a home, and demanded cryptocurrency. Seattle Couple Terrorized in Alleged Bitcoin Extortion Home Invasion Extortion schemes targeting digital assets such as bitcoin can

Coinpedia8h ago

The US authorities seize over $61 million USD in USDT related to "pig slaughter" scams

USDT news Enforcement Actions Security Incidents

U.S. federal agents seized over $61 million in USDT linked to "pig butchering" scams, where victims were lured by fake relationships and promised high crypto returns. Tether cooperated with authorities in asset freezes related to money laundering and fraud cases.

TapChiBitcoin11h ago

Six Polymarket accounts suspected of insider trading, betting on US sanctions against Iran, profit of $1 million

Prediction Market Security Incidents

According to analysis company BubblemapsSA's forecast, six newly opened accounts earned approximately $1 million by betting on the U.S. taking action against Iran before February 28. This has raised suspicions of insider trading, a pattern that has appeared in other prediction market cases.

GateNews12h ago

Comment

0/400

No comments