The European Union Agency for Law Enforcement Cooperation (Europol) published a report explaining how artificial intelligence and crypto affected organized crime.
In a threat assessment report on serious and organized crime, Europol stated that AI and crypto play a role in criminal efficiency. The law enforcement organization said criminal networks have demonstrated an ability to rapidly adapt to new technology.
The report said AI’s transformative qualities make it an attractive tool for criminals. The report said that generative AI had “lowered the barriers to entry” for digital crimes.
The government agency said AI lets criminals craft messages in multiple languages, targeting victims more precisely and globally. It also allowed malicious actors to create malware and child sexual abuse material.
How AI and crypto drive criminal efficiency
Europol also stated that AI’s automation capabilities have been transforming the efficiency of criminal operations. The government agency said criminals can automate their phishing campaigns using AI. Because of this, malicious actors can reach more victims with large-scale cyberattacks.
Europol said in the report that realistic synthetic media allows criminals to deceive victims, impersonate individuals and blackmail their targets. The organization wrote:
“The addition of AI-powered voice cloning and live video deepfakes amplifies the threat, enabling new forms of fraud, extortion, and identity theft.”
On Feb. 13, Blockchain analytics firm Chainalysis said that generative AI is “amplifying scams.” The analytics company said AI is making scams more affordable and more scalable. Chainalysis’ head of fraud products, Elad Fouk, said AI facilitates the creation of fake identities, allowing fraudsters to impersonate real users.
Apart from AI, the report also noted how blockchain-based technologies like cryptocurrency and non-fungible tokens (NFTs) have moved beyond cybercrime and are now involved in other traditional crime areas. This includes drug trafficking and migrant smuggling.
Europol also said that more criminal schemes have emerged to steal crypto, NFTs and resources used to mine crypto.
Related: Hacker breaks into AI crypto bot aixbt’s dashboard to snatch 55 ETH
ZachXBT says the Bybit hack shows how the industry is “cooked”
The most recent high-profile criminal activity in the crypto space is the Bybit hack, which led to nearly $1.5 billion in losses. In a Telegram post, crypto investigator ZachXBT said the hack has been “eye-opening,” showing how the industry is “unbelievably cooked” with hacks and exploits.
The crypto sleuth said the industry may be unable to fix itself unless the government “forcibly passes regulations that hurt our entire industry.” The investigator shared that as he helped freeze funds related to the hack, he witnessed flaws with decentralized and centralized protocols. ZachXBT wrote:
“Several ‘decentralized’ protocols have recently had nearly 100% of their monthly volume/fees derived from DPRK and refuse to take any accountability.”
The crypto investigator said North Korean hackers laundering the funds have demonstrated the flaws of Know Your Transaction and Know Your Customer protocols.
“Centralized exchanges end up being worse as when illicit funds flow through them a few take multiple hours to respond when it only takes minutes to launder,” ZachXBT said.
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