MEV Bot Scams Exploit AI Frenzy, Warns SlowMist Security Team

MEV Bot Scams: How Scammers Leverage AI to Deceive Crypto Users

Blockchain security firm SlowMist has raised alarms about a new wave of arbitrage MEV bot scams capitalizing on the artificial intelligence (AI) hype. These scams, posing as sophisticated AI-driven tools, are tricking crypto users into parting with their funds.

How Scammers Leverage AI to Deceive Crypto Users

SlowMist's investigation has uncovered a new scam tactic where fraudsters are rebranding old trading bots with AI-related names, such as "ChatGPT Arbitrage MEV Bot," to exploit the current AI craze. These scammers claim AI legitimacy by stating they used ChatGPT to generate the bot’s code, making it appear more legitimate and safe. 

They lure victims with promises of high profits, suggesting the bot can monitor new tokens and volatile price actions on Ethereum. To bolster their claims, scammers produce deceptive online videos, often using recycled footage and out-of-sync audio, to demonstrate the supposed effectiveness of their bots. These videos typically feature dubious accounts and misleading information. 

Victims are persuaded to connect their MetaMask wallets to a fraudulent Remix site and deploy ETH-funded smart contracts, with scammers claiming that the more ETH deposited, the higher the potential profits. Once users activate the bot by clicking "start," the deposited ETH is siphoned off to the scammer’s wallet via a backdoor coded into the smart contract.

SlowMist's Recommendations for Users

SlowMist urges users to be vigilant and take the following steps to protect themselves:

• Verify Claims: Use trusted tools like ChatGPT and Claude to verify the claims of these bots.

• Avoid Dubious Links: Be cautious of suspicious links and websites.

• Stay Alert: Be aware of malicious behaviors and red flags.

The firm has identified three scammer addresses that have collectively stolen over 50 Ether (worth more than $130,000) from nearly 200 victims since August. Scammers use a "wide-net approach," stealing small amounts from many victims. This method often leads victims to not pursue recovery due to the effort required, allowing scammers to continue their operations and frequently rebrand under new names.

SlowMist also cautions against the multitude of videos promoting these scams on platforms such as YouTube. Key warning signs to be aware of include out-of-sync video and audio, recycled footage, and an unusually high number of positive comments, often followed by updates revealing the crypto scam. 

By staying informed and vigilant, users can safeguard themselves from these sophisticated scams that are exploiting the AI frenzy in the crypto space.

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