The Rise of the Machines: How AI Is Fuelling the Next Generation of Crypto Scams

When Geoffrey Hinton, the “Godfather of AI”, publicly stepped down from Google and began sounding the alarm about artificial intelligence, the world finally started to listen. After all, Hinton helped build the very foundations of machine learning. So, when he warns that AI could be an existential threat, it’s not a sci-fi scare or fear-mongering. It’s a wake-up call.

At Crypto Seeker, we’ve always been bullish on the transformative potential of technology, but we’re also realistic about its risks. And today, we’re confronting one of the most concerning trends in crypto: the use of AI to power scams with terrifying efficiency.

AI Isn’t Just Smart, It’s Persuasive

In the past, spotting a scam email or a phishing attempt was easy. Poor grammar, weird fonts, or suspicious links gave them away. But AI has changed the game.

Large language models (like ChatGPT or others fine-tuned for malicious purposes) can now generate convincing, grammatically perfect, and even personalised messages. They can mimic the writing style of company CEOs, regulators, or even your own friends, and they can do it at scale.

And when deepfake technology is thrown into the mix, we’ve seen video calls with fake voices and faces that are almost indistinguishable from the real thing. It’s not just phishing anymore. It’s identity hijacking.

The New Breed of Crypto Scams

AI isn’t creating new crimes, but it is supercharging old ones:

• Phishing 2.0: AI can craft tailored emails based on scraped personal data, with subject lines that actually get you to click.

• Pump-and-dump bots: AI analyses social sentiment and market data in real-time to manipulate token prices with automated speed and precision.

• Fake advisory accounts: Generative AI can power entire networks of bots on X (Twitter), Telegram, and Discord, posing as successful traders offering fake tips, signals, or airdrops.

• Voice scams: With just a few seconds of audio from YouTube or TikTok, scammers can clone a voice and use it to call family members, employees, or investors, pretending to be in danger or requesting urgent crypto transfers.

These aren’t theoretical risks. They’re happening right now, and unfortunately, the anonymity of blockchain only makes it harder to trace them.

Geoffrey Hinton’s Warning Hits Home

Hinton said:

“I now think the digital intelligences we’re creating may soon be more intelligent than us, and not necessarily aligned with our goals.”

That’s a scary thought. But it also raises a deeper issue: the tools we’ve created to help humanity may also be used against us, especially in decentralised environments like Web3.

Crypto was built on the ideals of transparency, empowerment, and decentralisation. But without safeguards, it’s also fertile ground for AI-powered bad actors.

What Can You Do?

If you’re part of the crypto world; as a trader, builder, or casual investor, it’s not enough to stay ahead of market trends. You have to stay ahead of threat trends. Here’s how:

1. Verify everything — even messages from people you know. A quick video call or cross-check can save you thousands.

2. Use decentralised identity (DID) where possible. Verified blockchain credentials are harder to spoof.

3. Stay informed. Follow trustworthy crypto and AI experts who call out scams early.

4. Support regulation that targets malicious AI use, without stifling innovation.

5. Be cautious with new tokens or “airdrops” that come out of nowhere and promise too much.

Final Thoughts

Geoffrey Hinton’s pivot from AI evangelist to AI whistleblower isn’t about fearmongering. It’s a recognition that powerful tools need responsible users and guardrails.

In crypto, where trust is fragile and anonymity is high, we must be twice as vigilant. AI isn’t going anywhere. But neither is the crypto community’s spirit of innovation and resilience.

Let’s use that same spirit to outsmart the scammers before they outsmart us.

Stay sharp, stay decentralised.

Follow Crypto Seeker for more insights at the intersection of AI, Web3, and everything in between.