{"id":12906,"date":"2025-02-13T14:12:11","date_gmt":"2025-02-13T14:12:11","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=12906"},"modified":"2025-02-13T14:12:11","modified_gmt":"2025-02-13T14:12:11","slug":"chainalysis-warns-ai-powered-scams-flourish-on-huiones-platforms","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=12906","title":{"rendered":"Chainalysis Warns AI-Powered Scams Flourish on Huione\u2019s Platforms"},"content":{"rendered":"
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At least $9.9 billion in cryptocurrency scams were recorded on-chain in 2024. Although scam-related revenue has dropped, Chainalysis expects it to climb as more scam-related addresses are discovered.<\/p>\n

To top that, the rise of AI has also made scams more advanced and effective.<\/p>\n

AI Technology Amplifies Scams<\/h2>\n

The scam technology vendors of the P2P marketplace offering various illicit services, Huione, received a minimum of $375.9 million in cryptocurrency in 2024.<\/p>\n

Between 2021 and 2024, Huione\u2019s scam infrastructure providers saw exponential revenue growth, while AI service vendors\u2019 earnings surged by 1,900%. This reflects the booming use of AI tools that allow scammers to impersonate individuals or craft realistic content to deceive victims into fraudulent investment schemes.<\/p>\n

\"Revenue<\/a>
Revenue and Growth: Chainalysis<\/figcaption><\/figure>\n

Generative AI has the potential to drive legitimate innovation but also enables scammers to scale their operations more efficiently and at a lower cost. AI-powered fraud detection solution Alterya discovered that 85% of scams involve fully verified accounts that bypass traditional identity checks.<\/p>\n

Using this technology, fraudsters often trick victims into approving payments under false pretenses, a tactic known as authorized push payment (APP) fraud, according to Chainalysis\u2019 press release shared with CryptoPotato. <\/em><\/p>\n

In a statement, Elad Fouks, head of fraud products at Chainalysis and co-founder of Alterya, stated,<\/p>\n

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\u201cGenAI is amplifying scams, the leading threat to financial institutions, by enabling high-fidelity, low-cost, and highly scalable fraud that exploits human vulnerabilities. It facilitates the creation of synthetic and fake identities, allowing fraudsters to impersonate real users and bypass identity verification controls.\u201d<\/p>\n<\/blockquote>\n

Platforms like Huione Guarantee<\/a>, host numerous software vendors supplying generative AI tools for scams. One vendor on the platform promoted AI-based \u201cface-changing services\u201d priced at $200 in cryptocurrency.<\/p>\n

On-chain analysis also revealed several payments matching this amount, suggesting the buyers are likely scammers purchasing the software after encountering the vendor\u2019s advertisements on Huione Guarantee. Data also indicates that scammers are utilizing these technology vendors to carry out fraudulent activities.<\/p>\n

Huione debuted a blockchain initiative called Xone last year, along with a USD-pegged stablecoin known as \u201cUSDH.\u201d These tools are promoted as resistant to regulatory control and asset freezes, likely intended to bypass traditional restrictions. Whether XOC or USDH will emerge as Huione\u2019s primary trading currency is yet to be determined.<\/p>\n

For now, USDH is only accessible through Huione-affiliated sites, but an October 2024 announcement confirmed ongoing talks with major exchanges to list USDH on widely used trading platforms.<\/p>\n

Huione Vendors<\/h2>\n
\"Transfer<\/a>
Transfer Activity. Source: Chainalysis<\/figcaption><\/figure>\n

Chainalysis\u2019 analysis of on-chain interactions in 2024 among vendors and scams on the Huione platform uncovered 2,345 transfers between scams, infrastructure providers, social media management services, AI vendors, and data vendors.<\/p>\n

Two vendor types \u2013 infrastructure providers and social media management services \u2013 had the most transaction activity, often sending funds to one another. Scams showed moderate activity, primarily paying for social media management services, while data vendors and AI service vendors had the least interactions and transactions with other entities.<\/p>\n

The post Chainalysis Warns AI-Powered Scams Flourish on Huione\u2019s Platforms<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

At least $9.9 billion in cryptocurrency scams were recorded on-chain in 2024. Although scam-related revenue has dropped, Chainalysis expects it to climb as more scam-related addresses are discovered. To top that, the rise of AI has also made scams more advanced and effective. AI Technology Amplifies Scams The scam technology vendors of the P2P marketplace […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-12906","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/12906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12906"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/12906\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}