Beware: Old Trading Bot Scam Rebranded as ChatGPT Arbitrage MEV Bot

Beware: Trading Bot Scam Rebranded with AI Hype

The world of cryptocurrency is ever-evolving, with new technologies and trends emerging regularly. Unfortunately, this also means that scams continue to innovate and adapt. According to Cointelegraph, an old trading bot scam has resurfaced and is exploiting the current artificial intelligence buzz.

How Scammers Are Adapting

Blockchain security experts at SlowMist revealed in a Medium post from October 13 that cybercriminals have cleverly rebranded their tactics. Previously known as a "Uniswap Arbitrage MEV Bot," the fraudulent scheme now masquerades as a "ChatGPT Arbitrage MEV Bot." By leveraging the credibility associated with OpenAI's ChatGPT, these scammers create a facade of legitimacy.

The Mechanics of the Scam

The bait is simple yet alluring. Users are promised a trading bot capable of generating substantial profits by monitoring emergent tokens and identifying price fluctuations on the Ethereum network. Victims are instructed to:

• Create a MetaMask wallet.
• Follow a fraudulent link provided on the open-source platform Remix.
• Copy the provided code and deploy the bot.
• Fund the smart contract to activate the bot.

Once users click 'start,' their deposited ETH vanishes into a backdoor coded into the smart contract, funneled directly into the scammer's wallet. The stolen funds are either sent straight to exchanges or temporarily stored in alternate addresses.

Statistics from SlowMist

As of now, SlowMist has pinpointed three scammer addresses employing these tactics. One address alone has pilfered 30 Ether (ETH), equivalent to over $78,000, from more than 100 victims since August. Two other addresses have stolen 20 Ether, valuing over $52,000, from an additional 93 victims.

Scammers' Strategy

The scammers operate under a wide-net strategy, snatching small amounts from numerous individuals. This approach is often effective as many victims feel that the hassle of recovery far outweighs the benefit of the stolen sum. Consequently, scammers can maintain their illicit operations, frequently rebranding the scam to target unsuspecting cryptocurrency enthusiasts.

Conclusion

It is essential for cryptocurrency users to remain vigilant and skeptical of unrealistic promises of profits or complex trading systems, especially those leveraging popular technologies like AI. Always research thoroughly and be cautious when interacting with trading bots or any requests for your private keys or wallet access.