Charles Hoskinson, the founder of Cardano (ADA), has issued a warning about the potential risks associated with artificial intelligence (AI) technology in the crypto space.

Hoskinson highlighted the use of generative AI by scammers to deceive individuals into parting with their cryptocurrencies by impersonating influential figures. With the advancement of AI, the likelihood of scams becoming more sophisticated poses a serious concern for the public.

The Threat of AI-Driven Crypto Scams: Hoskinson recently shared a screenshot of an email impersonating him, attempting to trick the recipient into investing in a fraudulent project.

He pointed out the grammatical and stylistic quality of the message, indicating that it appeared to have been generated by an AI tool.

This example serves as a cautionary tale, highlighting the dangers that AI poses as scammers strive to create more convincing schemes.

The Rise of Impersonation Scams: In a video message to his followers, Hoskinson expressed concerns about scammers trying to deceive people by claiming to be influential figures such as himself, Elon Musk, or Vitalik Buterin.

These scams often promise quick returns or exclusive opportunities in exchange for cryptocurrency investments. Hoskinson emphasized that as AI technology advances, scammers may employ generative AI to create videos and audio that appear genuine, making it even more challenging to differentiate between real and fake communications.

Unintended Consequences of Generative AI: Drawing attention to a keynote by Nvidia’s CEO, Hoskinson underscored the potential for generative AI to create photorealistic visuals and videos based on textual input.

He warned that scammers could leverage this technology to fabricate convincing content, such as personal calls or solicitations for funds. These scams, often referred to as confidence scams, have the potential to defraud individuals of millions of dollars in cryptocurrencies.