Old Trading Bot Scam Rebranded as ChatGPT Arbitrage MEV Bot

The Rise of AI-Driven Scams: The ChatGPT Arbitrage MEV Bot

In today's fast-paced digital world, the integration of artificial intelligence in various sectors has opened up new opportunities, but it has also given rise to sophisticated scams. One of the latest trends in the world of cryptocurrency scams is the emergence of a fraudulent trading bot, rebranded as the "ChatGPT Arbitrage MEV Bot." According to Cointelegraph, this scam is exploiting the hype surrounding AI technologies, utilizing well-known names like OpenAI's ChatGPT to lure unsuspecting users.

The Mechanics of the Scam

Previously known as the "Uniswap Arbitrage MEV Bot," scammers have adapted their tactics, claiming that they leveraged ChatGPT’s capabilities to generate the bot's code. This association not only grabs attention but also helps in easing the doubts of potential victims regarding the bot's legitimacy.

The modus operandi of this scam typically involves:

• Promotion: Users are attracted by promises of high profits from the bot that monitors new tokens and quickly changing prices on Ethereum.
• Wallet Creation: Victims are instructed to create a MetaMask wallet, a popular crypto wallet.
• Fake Platforms: Scammers provide links directing users to the open-source platform Remix, where they claim the bot can be deployed.
• Activation Costs: Users must fund the smart contract to activate the bot, unbeknownst to them that a malicious backdoor exists within the contract.

Once users initiate the bot, their deposited ETH disappears into the scammers' wallets, funneled through coded backdoors. The outgoing funds are typically transferred to cryptocurrency exchanges or moved to temporary storage addresses to conceal the scammers' identities.

Identified Scammer Addresses

Blockchain security firm SlowMist reported on October 13 that they have identified three main addresses involved in these fraudulent activities:

• One address has allegedly stolen 30 Ether (ETH), equating to over $78,000, from more than 100 victims since August.
• Two other addresses each stole 20 Ether, amounting to over $52,000 from a combined 93 victims.

This "wide-net approach" employed by scammers—stealing small amounts from numerous individuals—demoralizes victims as the effort to retrieve the funds often exceeds the stolen amount. This technique allows scammers to continue their operations under various aliases without apprehension.

Staying Safe in the Crypto World

The rise of such scams underlines the importance of caution in the cryptocurrency space. Here are some preventative measures potential investors can adopt:

• Always conduct thorough research before interacting with any trading bot or investing platform.
• Be skeptical of high-profit claims, especially if they seem too good to be true.
• Verify the legitimacy of any software by checking user reviews and seeking peer feedback.
• Utilize reputable platforms and ensure that you securely manage your wallet information.

As the digital landscape evolves, so too do the tactics of malicious actors. Awareness and vigilance are key to protecting your assets from falling prey to these increasingly sophisticated scams.