Old Trading Bot Scam Rebranded as ChatGPT Arbitrage MEV Bot

Beware of the Rebranded AI Trading Bot Scam: How Cybercriminals Are Exploiting the Hype

In recent weeks, a concerning trend has emerged in the world of cryptocurrency trading; a classic scam is making a comeback, now rebranded to take advantage of the rising interest in artificial intelligence (AI). A report by Cointelegraph highlights that users are increasingly falling victim to what has now been dubbed the "ChatGPT Arbitrage MEV Bot" scam. Blockchain security firm SlowMist revealed that cybercriminals are leveraging the legitimacy associated with OpenAI’s ChatGPT to gain the trust of potential victims.

Old Tricks in New Wrapping: The Evolution of the Scam

This fraudulent scheme originally presented itself as a "Uniswap Arbitrage MEV Bot" and has undergone a name change to capitalize on the growing fascination with AI technologies. According to SlowMist’s Medium post dated October 13, the shift to incorporating ChatGPT effectively garners attention and diminishes skepticism regarding the bot's actual intent and design.

How the Scam Works

The scammers entice users with enticing promises of substantial profits from a trading bot that purportedly surveils new tokens and notable price fluctuations in the Ethereum market. To participate, victims are instructed to:

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

However, the scam operates on a backdoor mechanism. Once users click the ‘start’ button, their deposited Ethereum (ETH) vanishes, redirected into the scammers' digital wallets.

Identified Scammer Operations and Impact

SlowMist has identified three main addresses linked to these fraudulent activities. For instance:

• One address alone garnered 30 Ether (ETH), equivalent to more than $78,000, from over 100 victims since August.
• Two other addresses amassed 20 Ether, valued at over $52,000, from 93 victims.

Interestingly, the scammers utilize a "wide-net approach," collecting small amounts from numerous victims. This tactic often discourages individuals from pursuing the retrieval of their lost funds due to the disproportionate effort required versus the amount stolen.

Staying Safe: Tips to Avoid Falling for Scams

To protect yourself from such scams, consider the following precautions:

• Conduct thorough research before engaging with any trading bot.
• Avoid clicking on unsolicited links or downloading unknown software.
• Check for reviews and feedback regarding the bot or service.
• Stay updated on the latest scams circulating in the crypto space.

As technology evolves, so do the tactics of cybercriminals. Stay vigilant and informed to protect your assets in the ever-changing cryptocurrency landscape.