“Several developments in the cryptocurrency market are likely to have a major impact on the ways in which cybercrime will attack in the near future,” are the words with which the European Union Agency for Law Enforcement Cooperation (Europol) warns about crimes related to the cryptocurrency ecosystem.

The statement is part of the agency's annual report published on July 25, which highlights trends and aspects that could contribute to the rise in online crime. Among them, they cite cryptocurrency exchange-traded funds (ETFs) and non-fungible tokens (NFTs).

And while criminals have yet to find viable means to carry out large-scale frauds with these products, Europol's analysis highlights how the growing adoption of bitcoin ETFs makes users a target for criminals. 

The first Bitcoin ETF was approved in January 2024, to allow investors to speculate on the price of bitcoin without owning bitcoins directly. This development may lead to greater adoption of the cryptocurrency by attracting the attention of criminals. 

Europol report. 

This is a trend that, according to the European police agency, could play into the hands of fraudsters, as they find ways to take advantage of the lack of experience of many people who are increasingly attracted to this sector.

"The more people are exposed to these new financial products in the hope of profiting, the more likely they are to be abused," the report said.  

A situation that could escalate even more right now, after the recent approval of Ethereum ETFs. Which suggests that people will become more interested in ETFs.

“Companies issuing cryptocurrency ETFs will also have to hold large reserves of cryptocurrency, which could make them valuable targets for fraudsters,” the publication notes.  

In this sense, attention is drawn to the technological advances that are available to everyone with artificial intelligence (AI) and that make it easier for people, without much technical knowledge, to commit cybercrimes.

AI will contribute to the rise of cybercrime

The report highlights how AI tools and deepfakes are expanding opportunities for criminals to engage in social engineering, deception and manipulation operations. 

This happens through the abuse of strategies that allow "legitimate services to be usurped with malicious versions created ad hoc by criminals," according to Europol. In fact, AI is already being used as part of criminal scripts to hack into exchange offices and steal funds. 

This practice was denounced by the Binance exchange, which last year warned about the use of AI to create deepfakes trying to bypass KYC verification. 

“AI-generated ads are likely to become more prevalent, luring victims online, even across language barriers,” Europol said, and is therefore recommending that new methods be used to protect the EU’s financial system.

Europol Executive Director Catherine De Bolle said: 

Law enforcement agencies are expected to build a robust capacity to counter the growing threats arising from cybercriminals leveraging AI, both in terms of human resources and technical skills. 

At this point, the Europol report concludes that one of the ways to deal with these threats is prevention. It recommends not only educating users, but also trying to raise awareness among criminals.