Charles Hoskinson, the co-founder of Cardano, has sounded the alarm about the increasing threat of crypto scams, particularly with the advent of Artificial Intelligence (AI) technology.
Speaking in a June 4 video, Hoskinson addressed the prevalence of scams in the cryptocurrency space where individuals impersonate prominent figures like him, Elon Musk, or Bill Gates to deceive unsuspecting victims into handing over their hard-earned crypto.
The pundit shared a recent video from Nvidia, a leading technology company, demonstrating their advancements in generative AI. The video showcased the ability to create realistic video game graphics and generate lifelike human images using AI technology. Hoskinson expressed his worry that this rapidly evolving technology could be used to manufacture videos and audio, making it appear as if he is soliciting money or offering investment opportunities.
The crypto millionaire warned that scammers could leverage generative AI to create convincing content, leading thousands of people to fall victim to these sophisticated scams. Despite his efforts to educate and raise awareness about scams, Hoskinson predicted millions of dollars worth of cryptocurrencies, including ADA, would be stolen in the next 12 to 24 months.
“Millions of dollars worth of ADA and other cryptocurrencies will be stolen. This is the world we’re heading towards because of generative AI. It’s one of the dark sides and unintended consequences, but scammers are already doing this,” he said.
Meanwhile, while Hoskinson admitted feeling helpless in the face of this growing threat, he stressed the need for individuals to remain vigilant and authenticate any communication they receive. He further suggested using Pretty Good Privacy (PGP) encryption to verify identity, given that AI is currently unable to crack such encryption.
Hoskinson also highlighted Atala Prism, a solution built on Cardano to create authenticated communication channels. He hoped that integrating this technology into various platforms and communication channels could mitigate the impact of scams fueled by generative AI.
In conclusion, Hoskinson reiterated his warning: “You don’t get something for nothing. It’s always a scam.” He urged viewers to adopt a sceptical approach, assuming all content is unauthenticated until proven otherwise.
As cryptocurrency evolves, the battle against scams becomes increasingly challenging. Earlier last month, Facebook’s parent company Meta highlighted the uptick in AI-driven crypto scams.
As per the firm, the scams often come disguised as browser extensions or mobile apps posing as ChatGPT and AI software to steal user credentials. And whereas the firm stated it is working on building tools to detect and block these types of malware, it emphasized prevention being better than cure, asking users to be more vigilant online.