Cybercriminals are capitalizing on the growing interest in artificial intelligence (AI) by rebranding an old scam. According to blockchain security firm SlowMist, these scammers have shifted their focus from cryptocurrency trading bots to new AI-themed scams designed to lure unsuspecting users.
Rebranding Old Scams for New Hype
SlowMist recently reported that the scammers rebranded their fraudulent “Uniswap Arbitrage MEV Bot” as a “ChatGPT Arbitrage MEV Bot.” This tactic aims to attract users excited about AI’s potential.
The firm noted that “by attaching the ChatGPT label to their scams, they successfully capture attention and seem more trustworthy.” By associating their schemes with well-known technologies, scammers enhance their credibility and prey on people’s curiosity about advancements.
How the Scam Works
Scammers begin by enticing victims to create a MetaMask wallet and access a fraudulent link on the open-source platform Remix. Users are directed to copy and deploy a bot that claims to track new tokens and significant price fluctuations.
However, once users fund the associated smart contract, their Ethereum (ETH) disappears. SlowMist explained, “As users deposit more ETH, their apparent profits increase. Yet, when they click ‘start,’ their deposited ETH vanishes, funneled directly into the scammer’s wallet through a hidden backdoor in the smart contract.”
The stolen funds often get quickly transferred to exchanges or stored in temporary addresses, making recovery nearly impossible.
The Scale of the Scam
SlowMist’s investigation identified at least three Ethereum addresses linked to this scam, with over $130,000 in Ether stolen from nearly 200 victims. One address alone netted over 30 Ether (worth $78,000) from more than 100 victims since August. Two other addresses collectively stole 20 Ether, approximately $52,000, from 93 individuals.
SlowMist reports that the scammers adopt a “wide-net approach,” taking small amounts from a large number of victims. They noted, “Since the individual losses are relatively minor, many victims lack the time or resources to seek justice.” This tactic enables scammers to maintain their operations with minimal risk of repercussions, often under different names.
Scam Tactics and Red Flags
Scammers frequently promote these fraudulent bots on online platforms, especially YouTube. SlowMist cautions users to be wary of videos where the audio and visuals are mismatched or that use recycled footage, as these are typical indicators of scams.
Additionally, an unusually high number of positive comments followed by updates from users exposing the scam can be telltale signs. SlowMist cautioned, “The scammers rely on these superficial engagements to build trust and lure in more victims.”
On Twitter, users have also flagged similar AI-related scams. One tweet stated:
“These so-called ‘AI-powered bots’ are just rebranded scams. Don’t fall for the ChatGPT gimmick. Always verify the source!”
Conclusion
As AI continues to dominate headlines, cybercriminals are developing increasingly sophisticated scams. Blockchain security experts urge users to remain vigilant, especially when engaging with trading bots and tools that promise quick profits. The allure of AI might be strong, but it’s essential to exercise caution before trusting any claims that seem too good to be true.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
I believe that Web3 is not only a technological shift but a cultural and creative one. Strong ideas, thoughtful communication, and human-centered design will shape which technologies thrive and how communities evolve around them. My writing and research reflect this belief, focusing on clarity, relevance, and long-term perspective.
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