An uptick in users being duped by a revamped trading bot scam has been reported, with cybercriminals seizing on the surge of interest in artificial intelligence. According to a recent analysis by a blockchain security firm, scammers have pivoted from marketing their bots as “Uniswap Arbitrage MEV Bots” to the more enticing “ChatGPT Arbitrage MEV Bots,” aiming to capitalize on the current AI frenzy.
These fraudulent bots are presented as solutions that promise substantial profits by monitoring new tokens and significant price movements on the Ethereum network. The con artists entice potential victims to establish a MetaMask wallet and engage with a deceptive link on an open-source platform. Victims are often instructed to copy the bot’s code and deploy it, only to be misled into funding a smart contract that is supposedly necessary to activate the bot.
As users deposit more Ether (ETH) into the contract, ostensibly to enhance their returns, the reality is starkly different. Once the operation is initiated, the ETH is siphoned away into the scammer’s wallet through a concealed backdoor in the smart contract. This embezzlement often sees the stolen funds either exchanged for other cryptocurrencies or stashed in temporary addresses to obscure their final destination.
Research indicates that at least three addresses linked to these scams have been uncovered, with one individual responsible for stealing over 30 ETH — valued at more than $78,000 — from more than 100 victims since August. Others have similarly netted around 20 ETH from dozens of other unsuspecting individuals.
The modus operandi of these scammers is characterized by a “wide-net approach,” targeting numerous victims to accumulate smaller sums that, while seemingly insignificant on their own, collectively amount to substantial losses. This strategy often dissuades victims from pursuing recovery efforts due to the disproportionate effort required relative to their losses. The prevalence of such scams has been exacerbated by misinformation circulated online, particularly through certain video platforms that showcase these deceptive schemes as legitimate investment opportunities.
