AI-Enhanced Scams on the Rise: Web3 Security Guru Warns of New Wave

In an age where artificial intelligence is propelling industries forward at lightning speed, it’s also giving rise to new threats that we can’t ignore. Richard Ma, co-founder of Quantstamp, a leading Web3 security firm, warns that AI is now arming scammers with tools for executing highly sophisticated attacks on an unprecedented scale.

The New Era of AI-Enabled Scams

Speaking at Korea Blockchain Week, Ma detailed a chilling new reality: social engineering attacks, which have always been a part of the cyber threat landscape, are getting an upgrade. Advanced AI systems are making scams “a lot more convincing,” increasing the success rate of attacks.

Ma recalls a recent incident involving a Quantstamp client. The attacker used AI to impersonate the CTO of the targeted company convincingly. “The attacker engaged the target in several conversations to establish credibility before even making an ask,” said Ma, outlining how AI is making these scams more intricate and, therefore, more dangerous.

AI: The Amplifier of Threats

What makes this AI-enabled scamming particularly alarming is the scale. Attackers can automate social engineering tactics across thousands of organizations with minimal human involvement, warns Ma. “In the crypto sphere, databases with key contact information for various projects are often available. Armed with AI, hackers can automate outreach to these individuals, making it extremely difficult for organizations to defend themselves.”

Simple Yet Effective Defense Strategies

While AI-enhanced scams are growing in complexity, Ma offers straightforward advice for individuals and organizations. “Don’t share sensitive information through email or text. Use secure internal channels like Slack for all important communications,” he emphasizes.

Organizations should also double down on anti-phishing software that filters out automated emails from bots and AI. Quantstamp itself relies on IronScales, a company specializing in email-based security solutions.

The Battle Ahead

“We’re just at the starting line of an arms race between security measures and increasingly sophisticated AI-powered attacks,” Ma cautioned, urging everyone to be vigilant.

If you thought phishing emails and social engineering attacks were yesterday’s problems, think again. The tools scammers use are evolving, and so should our strategies for thwarting them. Stay alert, and remember: when in doubt, double-check and stick to your company’s secure communication channels.