Cybercriminals Exploit ChatGPT’s Name in New Ethereum Scam: MEV Bot Fraud Unveiled

Cybercriminals have adapted to trending topics, rebranding their fraudulent schemes under popular names like “ChatGPT.” Earlier this year, SlowMist’s founder Cos warned users on X about arbitrage MEV bot scams. Since then, these schemes have evolved, with scammers now marketing their fake bots as “ChatGPT Arbitrage MEV Bots.”

These bots promise to monitor the Ethereum blockchain for arbitrage opportunities, allowing users to profit passively. The scammers claim the bot’s code was generated by ChatGPT, easing concerns about its legitimacy.

However, this AI mention is only a marketing tactic, briefly appearing in tutorial videos that contain numerous red flags, such as poor video quality and recycled footage.

? Scammers are embedding MEV bot scams into tutorials, using AI buzzwords like ChatGPT to appear credible. They promise easy profits, but in reality, your funds are being funneled into scammer wallets.

Learn how they operate and how to protect yourself in our latest article.…

— SlowMist (@SlowMist_Team) October 13, 2024

How the Scam Works

To participate, users are directed to deploy a smart contract via a MetaMask wallet using a code provided by the scammer. This code is claimed to detect token price fluctuations on the Ethereum blockchain. Victims are then asked to deposit Ethereum (ETH) into the contract, with promises of higher profits for larger deposits.

Once users fund the contract and click “start,” their ETH is immediately transferred to the scammer’s wallet via a hidden backdoor. Victims unknowingly send their funds straight into the scammer’s address, losing any chance of recovery.

One identified scammer address, 0xAE…258122, amassed around 30 ETH, about $73,860, from over 100 victims. The funds are then routed through other addresses or sent directly to exchanges to further obscure the trail.

In addition to the main address, the scammers operate multiple collection addresses. These addresses have reportedly stolen around 20 ETH from approximately 93 victims. Scammers often target many individuals, collecting smaller amounts, which makes it difficult for victims to pursue legal action.

Warnings from platforms like Remix have been in place for years, with users leaving comments on scam-related articles and linking to fraudulent videos. Despite these efforts, the scams continue to proliferate.

How to Stay Safe in the Crypto Space

The SlowMist security team urges users to be cautious when dealing with unfamiliar links, especially those involving AI-branded tools. Users should carefully review any code before deploying smart contracts, using tools like ChatGPT or Claude to analyze for potential malicious activity.

Scams like this one highlight the importance of vigilance in the cryptocurrency space, where seemingly easy opportunities could lead to financial loss.

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