Bitcoin Inscriptions, ETFs, and AI: New Avenues for Cybercriminals

The hype surrounding the Ordinals project and the launch of Bitcoin ETFs could potentially trigger a new wave of cyberattacks, according to a recent Europol report on current cyber threats in the EU.

?In 2023, millions of victims across the EU were attacked and exploited online on a daily basis.

?Today, Europol published the Internet Organised Crime Threat Assessment (IOCTA) on:

?Key developments, changes & emerging threats in cybercrime.

More⤵️https://t.co/kTPaDMkHaV

— Europol (@Europol) July 22, 2024

The agency believes that the creation of NFTs and the placement of other types of data on the Bitcoin blockchain is a potential source of cyber threats, despite the technical complexity of the process.

The current and widely publicized topic of ETF approval could also attract the attention of criminals aiming to steal funds from unsuspecting users.

ETF issuers themselves could be targeted, as they will hold large reserves in cryptocurrencies.

Europol expressed concern that the development of blockchain, DeFi technologies, and P2P networks will provide hackers with broad opportunities to conduct anonymous transactions, bypassing government control.

The report pays special attention to AI-based tools that will enhance criminal methods and scenarios, including hacking cryptocurrency exchanges and protocols.

Among other threats:

• an increase in phishing ads due to the lack of rapid filtering in some LLM;
• the use of AI in “crime as a service” products;
• the distribution of fake CSAM files;
• deepfakes.

“AI tools will lower the entry barrier for cybercrime, meaning that people with limited technical knowledge will be able to carry out cyberattacks and organize fairly complex online fraud schemes,” Europol noted.

Last year, one of the industry’s pioneers, Geoffrey Hinton, warned of potential threats associated with AI.

Before that, former Google CEO Eric Schmidt stated that the technology poses an “existential risk,” which could cause many people to “suffer or die.”