Beware of the Rebranded ChatGPT Arbitrage MEV Bot Scam

Beware of the Rebranded ChatGPT Arbitrage MEV Bot Scam

In recent weeks, numerous users have fallen prey to a sophisticated trading bot scam that has evolved to take advantage of the growing hype surrounding artificial intelligence technologies, particularly OpenAI's ChatGPT. According to Cointelegraph, the blockchain security firm SlowMist released a detailed report on October 13, highlighting how cybercriminals have successfully rebranded an old scam to make it appear more credible.

The Evolution of the Scam

Originally marketed as a "Uniswap Arbitrage MEV Bot," this scam has now taken on the name "ChatGPT Arbitrage MEV Bot." SlowMist explains that by associating their scams with the reputable name of ChatGPT, scammers have been able to draw attention and quell any initial doubts users may have regarding the bot's legitimacy. They claim the algorithm’s coding was generated using ChatGPT, adding an air of authenticity to their con.

How the Scam Works

The scam operates by enticing users with offers of a trading bot that promises to deliver substantial profits through vigilant monitoring of new tokens and significant price changes on the Ethereum network. Users are persuaded to create a MetaMask wallet and click on a fraudulent link provided through the open-source platform Remix.

Once the users copy the provided code and deploy the bot, they are instructed to fund the smart contract to "activate" it. Unfortunately, as soon as they click 'start,' their deposited Ether (ETH) disappears into the scammers' wallets, thanks to a carefully crafted backdoor embedded in the smart contract. Victims soon discover that the outgoing funds are either sent directly to cryptocurrency exchanges or hidden within temporary storage addresses.

Evidence of Scamming Activity

According to SlowMist, three addresses have been identified as operating these scams. One address managed to pilfer 30 Ether (ETH)—valued at over $78,000—from more than 100 victims since August. Similarly, two other addresses stole 20 Ether, worth over $52,000, from 93 victims. This calculated "wide-net approach" allows scammers to extract small amounts from many users, with many victims foregoing the pursuit of their lost funds due to the disproportionate effort required compared to the amounts lost.

Preventing Scams in the Cryptocurrency Space

As these scams continue to proliferate, it becomes increasingly important for users to exercise caution and thoroughly vet any tools or bots they consider using in their trading activities. Here are some practical tips to safeguard your assets:

• Always research any trading bot or platform before use, looking for reviews and third-party validations.
• Be skeptical of bots promising quick and high returns on investment.
• Verify the legitimacy of the code before deploying any smart contracts.
• Use secure wallets and be wary of sharing your recovery phrases or private keys.

Conclusion

The rebranding of the "ChatGPT Arbitrage MEV Bot" is just one of many evolving tactics used by scammers in the cryptocurrency landscape. By remaining vigilant and informed, users can better protect themselves against these increasingly sophisticated scams.

Further Reading

For more insights into cryptocurrency scams and protection strategies, visit our relevant articles section. For deeper analysis, check out SlowMist's full report on the risks associated with these emerging trends.