Former Trading Bot Scam Rebranded as ChatGPT Arbitrage MEV Bot

According to reported information, a growing number of users are falling victim to an old trading bot scam that has been rebranded to exploit the current hype around artificial intelligence. In an article published on October 13 on Medium, the blockchain security company SlowMist revealed that cybercriminals have adapted their tactics by using the name ChatGPT from OpenAI for their fraudulent bots to appear more credible.

Previously marketed as the "Uniswap Arbitrage MEV Bot", this scam has been rebranded as the "ChatGPT Arbitrage MEV Bot". SlowMist explains that by associating their scams with ChatGPT, scammers manage to attract attention and dispel users' doubts about possible malicious intent in the code. The fraudsters claim to have used ChatGPT to generate the bot's code, which helps to further convince users of its legitimacy.

The scam involves luring users with the promise of a trading bot that will help them make large profits by monitoring new tokens and significant price fluctuations on Ethereum. Victims are encouraged to create a MetaMask wallet and click on a fraudulent link on the open-source Remix platform. Once the code is copied and the bot is deployed, users are asked to fund the smart contract to "activate" it. However, when the user clicks "start", the deposited ETH disappears, transferred directly to the scammer's wallet via a backdoor encoded in the smart contract. Outgoing funds are either transferred directly to exchanges or moved to temporary storage addresses.

SlowMist has identified three addresses of scammers using these techniques. One of them stole 30 Ether (ETH), worth more than $78,000, from more than 100 victims since August. Two other addresses stole 20 Ether, worth more than $52,000, from 93 victims. Scammers employ a "wide net approach", stealing small amounts from many victims, who often do not bother to try to recover the funds because the effort required is greater than the amount stolen. This allows scammers to continue their operations, often renaming the scam under a new name.

The blockchain security company also noted that the internet, especially YouTube, is full of videos promoting this type of scam. The telltale signs of a scam may include a desynchronization between the video and the audio, or the use of recycled footage from another source. An unusually high number of flattering comments and thank-yous at the top of the discussion thread, followed by later updates denouncing the scheme as a scam, can also be warning signals.

Precautions to take

In the face of this growing threat, it is crucial for users to double their vigilance. Here are some tips to protect yourself:

| Security Measure | Description | |---------------------|-------------| | Thorough Verification | Always conduct thorough research on any project or tool before investing | | Distrust of unrealistic promises | Beware of promises of quick and significant gains | | Expert Consultation | Consult professionals in finance or blockchain if in doubt | | Use of reputable platforms | Favor recognized and established exchanges and trading tools |

It is essential to keep in mind that in the field of cryptocurrencies, as with any investment, if an offer seems too good to be true, it probably is. Caution and education remain the best defenses against these sophisticated scams.