Cardano creator Charles Hoskinson is cautioning crypto enthusiasts about the proliferation of scams utilizing generative artificial intelligence (AI) to trick or steal victim’s cryptocurrencies. In a new video, he predicts that millions of dollars worth of Cardano (ADA) will be lost to scams in a year’s time as they take over. The increase in generative AI coupled with video and audio technology to create well-designed and convincing communication material may spell doom for unwary investors who assume that sources sending them communication materials are trustworthy.
Although Hoskinson has warned against the risks of fraud in the past, he fears that the advancement of AI technologies and their accessibility may produce more sophisticated scams. He said that there would always be scams and the best way for authenticating identity is through a Pretty Good Privacy (PGP) Key — a decryption and encryption program that ensures cryptographic privacy during data communication.
Hoskinson’s latest concerns arise as a result of the progression of AI technology that continues to expand at an alarming rate. Generative AI technology breakthroughs have implications not only for fraud in the cryptocurrency arena but also for other areas like deepfakes, where AI-generated video can make people appear to be saying and doing things they never did. The effects of this technology could be devastating for companies, governments, and individuals who cannot detect or catch the fraudsters before they execute their scams.
The threat of scams in the cryptocurrency industry is very real. Reports from different parts of the world indicate that people lose millions of dollars to cryptocurrency-related scams every year. Cryptocurrency fraudsters use different tactics and may promise free tokens, large rewards for early buyers, or conduct fake initial coin offerings (ICOs). These scams can come in the form of phishing scams, fake exchanges that pose as real exchanges, Twitter scams using false profiles, Giveaway scams that require the receiver to give money first, fake ICOs of well-known existing projects like Ethereum and Bitcoin, and Ponzi schemes.
On the other hand, Cardano has gained significant popularity in the blockchain and cryptocurrency space. The Cardano team has emphasized transparency and security when developing their distributed ledger technology. Cardano aims to provide a more secure and transparent system than its predecessors like bitcoin and ethereum. Through peer-reviewed research, the Cardano team has attracted attention from various institutions, including universities, governments, and businesses.
In conclusion, with the progressive leap in AI technology, scams, both within the cryptocurrency and outside spaces, will continue to escalate. Online users must remain vigilant and remember that they do not get anything for free. Scammers will always exist, and people need to understand that there is no shortcut to success or wealth and ensuring they only trust communications that come from a verified identity through PGP encryption key. People that fall victim to scams will ultimately lose millions of dollars of their hard-earned money which could have been put to more profitable use through wise investment choices.
