A recent report by Europol warns that artificial intelligence (AI) and crypto are granting control to criminal networks.
The report indicates the integration of AI and blockchain could accelerate organized crime in the future, while the rollout of autonomous AI could result in opportunities for AI-controlled criminal networks.
Europol cites its recent assessment of organized crime threat that combining AI and crypto could scale online fraud schemes. The authors indicated that AI helps craft realistic narratives incorporating trending societal topics. The authors added that cryptocurrency is the prominent payment method.
Crypto and Crime
The assessment by Europol shows a far-reaching discovery of the scaled role of crypto in Europe’s serious crime. The authors indicate crypto is now beyond the cybercrime scope as it extends to traditional crimes, including migrant smuggling and drug trafficking.
The report reveals that crypto is facilitating other crime varieties, including online fraud, cyberattacks, human trafficking, and evading sanctions.
The report by the senior researchers drawn from the crime and security fields portrays a stark warning of how AI could effectively automate criminal activity. Also, AI both accelerates and expands the scale of criminal activity.
Criminals Switch to AI
The criminal actors are leveraging the automation of capabilities through AI to make their operations expansive and efficient. The report shows that automating phishing campaigns to launch large-scale cyber-attacks has facilitated criminals to realize more, including victims and global reach while utilizing fewer resources.
The assessment lists several cybercriminals as leveraging AI, particularly actors behind social engineering, attack automation, and bypassing security measures, thus making cyberattacks scalable.
Europol’s evaluation echoes the findings in other private research, particularly one released in January by a blockchain intelligence platform. The report showed bad actors integrate AI to execute their hacks and fraud.
While criminal actors have evolved over time, the prevalence of AI offers them the platform to launch sophisticated yet disguised attacks. The awareness of these AI-powered attacks has attracted scrutiny from on-chain security firms.
Is AI Facilitating Crime?
The TRM Labs policy head for EMEA, Isabella Chase, revealed three primary ways criminals utilize AI. Primarily, criminal actors are automating attacks using AI-based tools to support phishing campaigns and scale the delivery of convincing messages.
Chase indicates that the criminals are leveraging AI to generate deepfakes and synthetic media. They are using AI to embellish the stolen identities they later dupe victims. This is becoming critical for the business compromise that now is the most profitable online fraud.
AI is utilized less visibly in supporting cybercrime and exploits, particularly in sourcing additional information, details, and data the actors would have otherwise missed. Chase elaborates that AI algorithms optimize ransomware operations by furnishing actors with critical data and systems for the highest leverage. The TRM Labs executive singles out AI as enabling the dynamic adaptation of malware to avoid real-time detection.
Senior Management Concerns
While using AI adds millions to the cost incurred from organized crime, TRM Labs expects more criminals to embrace the technology in the coming years. The actors will likely experiment with more ways to harness the technology relative to their ends.
Threats posed by AI-powered crime emerge as Singapore-based Kroll’s recent report shows 76% of the executives polled admitting fears of financial crime range this year from fraud, scams, and bribery. The figures closely match the global level at 71%, with the financial and risk advisory solutions specialist indicating that 82% of senior management within the Asia-Pacific region is likely to bear more financial crime.
Criminals will likely leverage AI to target and engage victims, including individuals and entities. The technology is set to ease more programmatic laundering of loot, thus making it easier for the actors to profit from each exploit.
Chase is optimistic about law enforcement and private-based entities integrating AI and advanced analytic tools to spot and thwart criminal activities.
