Deceptive 'slippage bot' cryptocurrency scam is circulating on YouTube

Deceptive 'slippage bot' cryptocurrency scam is circulating on YouTube
28 Mar 2024

A fraudulent scheme involving a so-called "slippage bot" has been identified on YouTube, exploiting the artificial intelligence model ChatGPT to entrap individuals in a cryptocurrency scam.

The fraudsters behind this operation hire unsuspecting actors via Fiverr, who unknowingly recite scripts for these deceptive videos.

One actor disclosed that he was not paid for his services, despite his image being used in multiple videos under accounts he doesn't control.

Scam videos follow an identical deceptive narrative
Scripted fraud

The scam videos follow a consistent narrative, with the actor claiming to have 'personally created a bot using coding knowledge.'

They assert that this bot, powered by ChatGPT, allows anyone to generate income without significant coding skills.

The actors warn viewers about prevalent scams in the crypto world and advise against interacting with 'unfamiliar wallets.'

The script then instructs viewers on where to 'copy code' for what they term as front-running crypto transactions.

Fraudsters exploit MetaMask wallets with false code
Cryptocurrency theft

Contrary to the claims made in the videos, the provided code does not function as advertised.

Instead, anyone who links their Metamask wallet and executes the code unintentionally transfers their cryptocurrency assets to one of many wallets controlled by these anonymous scammers.

The videos vary slightly in their wording about potential earnings, with some promising daily returns of up to $3,000 (about Rs. 2.5 lakh), while others mention amounts in Ethereum or percentages.

Actors unknowingly hired for scam videos
Innocent participants

There is no evidence to suggest that the individuals featured in these videos are aware they're part of a scam.

Three individuals confirmed they were hired on Fiverr for voice-acting work.

By hiring real actors through gig-work platforms like Fiverr, scammers can remain anonymous while using real people as the face of their fraudulent operations.

The constant reposting of these videos on new YouTube accounts has caused significant distress to some of the actors involved.

Fiverr responds to actor's complaints
Platform's response

Actor Scott Panfil, one of the individuals unknowingly involved in the scam, reached out to Fiverr about the account that hired him and was informed it had been terminated.

However, Fiverr stated it couldn't take further action.

A representative for Fiverr told Gizmodo, "Any attempt to defraud or scam others is in clear violation of our terms of service and strictly prohibited."

The company has blocked accounts brought to their attention and plans to compensate Panfil after he wasn't paid.

Scam videos are evasive and accompanied by positive comments
Hidden threat

These scam videos are not easily discoverable through a basic YouTube search and are often accompanied by overwhelmingly positive comments, likely generated by a bot network.

Gizmodo first became aware of this scam from consumer complaints filed with the FTC mentioning ChatGPT.

One complaint detailed a loss of 0.5 Ethereum, followed by an additional 0.65 Ethereum, totaling around $2,500 (roughly Rs. 2.08 lakh).

YouTube takes action against scam videos
Measures

The frequency of these scam videos on YouTube has reportedly surged recently.

In response, YouTube spokesperson Javier Hernandez stated that the platform has strict policies in place to protect the YouTube community, and that six channels have been terminated for scams and deceptive practices.

He added, "We are also in the process of reviewing the ads in question and will take appropriate action on those that violate our ads policies."