07.01.2025 - Unfortunately, as the popularity of cryptocurrencies has grown, so has the number of crypto scams. The use of artificial intelligence (AI) is particularly insidious. For example, scammers are using AI to create scam websites, social media profiles, and even videos that look deceptively real. In the first weekly review of the year, we look at a case involving a supposed crypto expert who was promoting software on YouTube that promised huge profits through AI-driven trading. Instead of the advertised software, however, victims unknowingly downloaded malware.
The rise of AI in crypto scams
In recent years, cryptocurrencies have become increasingly popular – but as they have grown in popularity, so has the number of scams. Recently, scammers have begun using AI to trick their unsuspecting victims, for example using it to create scam websites, social media accounts, programs and even videos that look deceptively real and are therefore difficult to detect as fakes. Scammers can also use AI to generate automated responses to communicate with their victims, and answer any questions they ask.
A fake YouTube channel
In a case reported to us, the AI-assisted crypto scam started on YouTube. The channel features a supposed crypto expert offering a range of services, including crypto trading and investment advice. However, this very real-looking 'person' is most likely AI-generated. The profile itself also looks real and even has a 'verified' label. It has many followers, views and positive comments – but what few people know is that all this can be faked for a price. Over 100,000 followers were added in only one day, according to the profile statistics:
It is also interesting to note that all the videos have virtually the same content. All of them provide instructions on how to activate what they claim is the developer mode of a software called TradingView. This is done by running a piece of code in a command line (CMD) to install an AI that will help generate profits. What actually happens is that malicious software, known as an 'infostealer', is downloaded onto the computer. It allows scammers to steal sensitive information and passwords, and empty entire crypto wallets. Not only do the victims of this scam suffer a financial loss, but they also lose access to their email and other accounts, which can make the damage even more serious.
Stay alert and informed
- Be sceptical about unsolicited crypto investment opportunities. Scammers often use spam emails, messages and social media ads, or even phone calls, to contact potential victims;
- Do your own research before investing in crypto. Read reports and reviews about the company or project you are considering investing in and make sure it has a good reputation. Don't just rely on what the company says;
- Look out for red flags that a cryptocurrency may be a scam. These include promises of high yields without risks, pressure to invest quickly, and insufficient information about the business or project behind the investment;
- Be wary of software downloads from unknown sources. Only download software from reputable sources – if in doubt, do not install the software. Be especially careful if you are asked to run a command line (CMD) after downloading software. Executing code can have serious consequences and should only be done by experts;
- File a report if you think you have been the victim of a crypto scam. You can find the nearest police station on the Suisse ePolice website (available in German, French and Italian);
- Report scam profiles to the relevant social media platforms.
More information
The website of the Swiss Financial Market Supervisory Authority FINMA (finma.ch) provides information on authorised financial service providers in Switzerland and a film with practical tips on how to protect yourself against investment fraud.
FINMA also maintains a non-exhaustive warning list.
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Last modification 07.01.2025
