30s Summary

Blockchain security firm SlowMist warns against a new twist to an old trading bot scam involving OpenAI’s ChatGPT. The scam, previously labelled “Uniswap Arbitrage MEV Bot”, now uses the ChatGPT tag to appear more credible. Scammers convince victims their bot can predict token performances and persuade them to deposit Ethereum as setup for the bot. Once the victims click ‘start’, the deposited Ethereum is transferred directly to the scammers’ wallet via a backdoor in the smart contract. Scammers usually steal small amounts, which discourages victims from seeking reimbursement.

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Blockchain security company, SlowMist, is warning that more and more people are falling for an old trading bot scam. It seems that cybercriminals are jumping on the artificial intelligence bandwagon and using the AI hype to trick unsuspecting folks.

In a recent blog post, SlowMist explained how scammers are using OpenAI’s ChatGPT to add a layer of credibility to their scams. What used to be marketed as a “Uniswap Arbitrage MEV Bot” has been given a new design and a new name – “ChatGPT Arbitrage MEV Bot”.

Apparently, by saying they used ChatGPT to make the scam bot’s code, scammers are managing to allay fears about any naughty code that might be hidden in the bot. Designating their scams with the ChatGPT label makes them look more believable and trustworthy.

So here’s how the scam works: the scammers tempt people with their trading bot, claiming it can bring in big bucks by keeping an eye out for brand new tokens and major price changes in Ethereum. Victims are then persuaded to set up a MetaMask wallet and are redirected to a fake link on the open-source platform, Remix.

Users are asked to copy the code and roll out the bot. Once that’s done they’re told to fund the smart contract to “activate” it. Victims are led to believe that the more Ethereum (ETH) they plunk down, the higher their possible gains. But the minute they click ‘start,’ their deposited Ethereum disappears, ending up in the scammer’s wallet through a backdoor in the smart contract.

The money is generally transferred straight to exchanges or moved to holding addresses, according to the security firm.

SlowMist has identified three scammer addresses using this method to trick people. One of them swindled over 100 users out of 30 Ether (worth more than $78,000) since August. Two others ripped off 93 users for 20 Ether, amounting to over $52,000.

SlowMist explained that these scammers typically use a “wide-net approach.” This means they steal little amounts from many people, who often don’t try to get their money back because it’s more trouble than it’s worth. This approach allows the scammers to keep operating, usually just rebranding the scam with a new name.

Remember folks, be vigilant when dealing with bots. If something seems too good to be true, it probably is. YouTube is filled with videos advertising these scams. Be on alert for warning signs like videos with out-of-sync audio, and recycled footage. A ton of comments praising the scheme, followed by later comments calling it a scam, can also be signs to watch out for.

Source: Cointelegraph