MCS Crypto News - Issue #16

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Mainstream media has been losing steam to online platforms like X (twitter) and youtube for awhile now. Their last ditch effort for survival seems to be to twist and manipulate headlines - trying to keep your attention.

This time around, they took aim at crypto - and tied it to the biggest thing in the headlines: the war in the Gaza Strip. Here’s the thing though… it was all a lie.

🎭 Misleading Reports

The Wall Street Journal recently claimed that Hamas received tens of millions in crypto to support conflicts in the Middle East. This alarming headline caught the attention of many, including influential members of Congress.

Blockchain analytics firms, such as Chainalysis and Elliptic, countered these claims, estimating the funds to be in the mere thousands. Despite these clarifications, the WSJ hasn't issued a correction, and the narrative continues to influence policymakers.

🔍 Digging Deeper

• Congressional Reaction: Driven by the WSJ's report, over 100 lawmakers reached out to the U.S. Treasury Department, inquiring about measures to prevent crypto's potential use in terrorism financing. Senator Sherrod Brown, leading the Senate Banking Committee, is among those advocating for stricter regulations on crypto.

• The Actual Data: Elliptic, whose data was misconstrued in the WSJ article, highlighted that the most significant public crypto fundraising campaign related to this issue was by Gaza Now, a pro-Hamas news organization, which raised only around $21,000. Most of these funds have reportedly been frozen by authorities.

🤔 Questioning the Narrative

• Calls for Correction: Prominent voices in the crypto community, like VC Nic Carter, have urged the WSJ to retract its misleading story. However, the damage might already be done. The narrative has taken root, leading many casual observers to believe in a distorted version of events.

• Crypto's Struggle with Media: The crypto industry has often felt misrepresented by centralized media. This recent incident only amplifies the industry's frustrations, especially when such reports directly influence high-level policymaking.

✍️ A Journalist's Perspective

• Challenges in Reporting: While many journalists strive for accuracy, the broad generalizations and misconceptions can be disheartening. It's essential to remember that not all reporters approach topics with bias, just as not all in the crypto industry have the same intentions.

• The Bigger Picture: The reluctance of outlets like the WSJ to correct their narrative, even in the face of clear evidence, raises concerns about the intentions of mainstream media. It underscores the importance of critical thinking and seeking multiple sources for information.

🙁 The Unfortunate Reality

The persistence of this misleading narrative, despite clarifications from multiple sources, suggests that some parties might be prioritizing their agendas over the truth. It's a reminder of the challenges the crypto industry faces in its quest for fair representation.

🚀 Generative AI's Impact on Crypto Security

As Generative AI like ChatGPT becomes more prevalent, the crypto community faces a surge in phishing scams. Since ChatGPT's introduction, phishing emails have soared by 1,265%, as highlighted by cybersecurity firm SlashNext.

💡 Quick Refresher 

• What is Generative AI?

  • Generative AI refers to a subset of artificial intelligence that's designed to create content. It can produce text, images, music, and other forms of media by training on vast amounts of data. Tools like ChatGPT are examples of generative AI, which can craft human-like responses or content based on the patterns they've learned.

• What is a Phishing Scam?

  • A phishing scam is a deceptive tactic used by cybercriminals to trick individuals into revealing sensitive information, such as passwords, credit card numbers, or other personal details. Typically, it involves sending fraudulent emails, texts, or messages that appear to come from reputable sources. These messages often contain malicious links or attachments designed to steal information or infect devices.

🦹 Crypto's New Adversaries: AI-Driven Cybercriminals

• Darkweb tools such as WormGPT, Dark Bart, and FraudGPT are being weaponized to target crypto users.

• Cybercriminals are not just manipulating traditional systems but are also exploiting OpenAI’s ChatGPT to craft sophisticated crypto scams.

📊 Phishing: The Disturbing Numbers

• In the last quarter of 2022 alone, daily phishing attacks reached 31,000 per day - a 967% increase in attempts to steal credentials.

• Of these, 68% were text-based business email compromises (BEC), and 39% were SMS phishing (smishing) attacks.

🤖 The AI Duel: Guarding Crypto Assets

• As cyber threats evolve with AI, the crypto industry's defense must also innovate. The solution? Combat AI with AI.

• Generative AI tools are now in the frontline, predicting and thwarting phishing attempts targeting crypto users.

• However, solely relying on platforms like ChatGPT isn't the silver bullet. Specialized AI models tailored for crypto security are essential.

⚠️ AI Guardrails: A Double-Edged Sword for Crypto

• While AI developers have set up barriers against misuse, determined hackers are finding workarounds, especially in the crypto domain.

• Reports suggest that AI chatbots can be tricked into offering insights on crypto-related malicious activities, posing a significant threat to the crypto community.

• Recognizing these vulnerabilities, OpenAI has called upon cybersecurity experts to pinpoint and patch potential security gaps.

🛡️How to Stay Safe

• Stay Informed: Always keep yourself updated about the latest phishing techniques. Cybercriminals constantly evolve their tactics, so being aware can help you spot red flags.

• Double-Check URLs: Before clicking on any link, hover over it to see where it leads. Ensure the website is secure by looking for "https://" at the beginning of the URL.

• Avoid Unsolicited Attachments: Be wary of downloading attachments from emails you weren't expecting, even if they seem to come from a known contact.

• Use Two-Factor Authentication (2FA): Enable 2FA on all your accounts. This adds an extra layer of security, ensuring that even if someone has your password, they can't access your account without a second verification step.

• Regular Backups: Regularly back up your data. In case of a ransomware attack, having backups ensures you don't lose vital information.

• Educate Yourself on Generative AI: Understand how generative AI works, especially when interacting with AI chatbots. Recognize that while they can provide accurate information, they can also be manipulated by malicious actors.

• Install Security Software: Ensure you have reliable and updated antivirus and anti-malware software. Regularly scan your devices for threats.

• Be Skeptical: If something seems too good to be true, it probably is. Always verify offers or requests for personal information.

• Report Suspicious Activity: If you come across potential phishing emails or websites, report them. This can help prevent others from becoming victims.

Thank you so much for your continued support and for being a part of this journey with me. It has been an honor to write a letter to you each day.

My mission has always been to demystify the world of crypto and make it accessible and simple for everyone. I truly believe that crypto is a way to escape the current financial system, and everyone deserves the opportunity to learn about it before its too late. Money is changing - and people NEED to know.

To better serve this mission and to ensure the quality of the content we deliver, the newsletter will be transitioning from daily to solely Mondays and Fridays. This shift will allow me more time to focus on marketing efforts, spreading the word, and most importantly, curating more actionable content for all of you. Expect to see more free resources, comprehensive guides, and insightful courses in our upcoming editions. Together, let's Make Crypto Simple!

Sincerely,

Chris Schawel


^{The content provided in this newsletter is for entertainment purposes only and should not be construed as financial advice. All information, including but not limited to market analysis, price predictions, and investment strategies, is purely speculative in nature. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. We are not responsible for any losses incurred as a result of the information presented in this newsletter.}