Crypto Threat Forecast 2024: Rise in Sophisticated AI-Driven Phishing Schemes & BRC-20 Exploits
Summary:
Blockchain security firms forecast an upsurge in threats to cryptocurrency projects and investors in 2024, including AI-powered phishing schemes, BRC-20 exploits, and smart contract vulnerabilities. Despite a reduction in scam-related losses in recent years, experts caution that scammers are becoming more sophisticated, employing tactics such as generative AI and "deep fakes". Additionally, the nascent BRC-20 ecosystem and cross-chain bridges are identified as potential areas of concern due to their security vulnerabilities. To combat escalating cyber threats, industry professionals recommend intensified law enforcement investigations, advanced fraud protection programs, and enhanced collaboration between public and private sectors.
In 2024, blockchain security companies predict a significant increase in potential threats to cryptocurrency projects and investors. This includes AI-driven phishing schemes, BRC-20 exploits, and new vulnerabilities in smart contracts. While losses relating to scams and hacking in 2023 had been reduced to $1.7 billion from the previous year's $4 billion, CertiK blockchain analyst Jesse Leclere emphasized to Cointelegraph that these scams are only becoming more sophisticated, requiring continuous vigilance.
Leclere explained that phishing scams, which are becoming more sophisticated, are expected to target not only individual users but also corporate networks. These scams leverage tactics specially designed for the context of cryptocurrency, as exhibited in the December 14 Ledger Connect attack. Leclere noted that generative AI is likely to be utilized by cybercriminals seeking to automate operations and generate believable fake calls, videos, and messages to trap potential victims.
Jenny Peng, a research analyst from 0xScope, echoed similar sentiments, warning that AI could play a critical role in the development of increasingly realistic "deep fakes" used to deceive cryptocurrency users. She further anticipates that the emerging BRC-20 ecosystem will be seen as an inviting target by hackers due to its relatively undeveloped security measures.
Further concerns were voiced by CertiK's Leclere regarding cross-chain bridges, which have been a persistent issue for the industry. These systems, which are becoming more popular due to their facilitation of greater cross-currency compatibility, are likely to become attractive potential targets for cybercriminals looking to exploit protocol vulnerabilities.
Some of the largest hacks in the crypto sector have stemmed from bridge exploits, including the record-holding $650 million Ronin bridge hack. Leclere predicts that this will continue to be a problem in 2024 unless substantial upgrades in security are implemented.
In the same vein, Phil Larratt from Chainalysis warned that criminal actors are likely to continue refining their methods, especially as more traditional organized criminals adopt cryptocurrency. In anticipation of the next wave of scams potentially involving privacy coins, bridges, mixers, and other obfuscation tools, Law enforcement organizations heightened investigations, comprehensive training programs, advanced fraud protection schemes, and increased cooperation between public and private sectors would be required, he said.
Published At
12/27/2023 4:45:56 AM
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