Economist report finds AI and crypto scams use card-linked payments
Technology
AI and crypto scams are teaming up, according to a new report from The Economist.
Even though crypto startups pulled in $10 billion in the first half of this year, there's been a spike in shady deals using special crypto cards.
These cards connect digital wallets to regular payment systems, helping people, especially in places like China, dodge restrictions and access U.S.-based AI tools like ChatGPT.
Card providers lack strong ID checks
Crypto-enabled cards are now a go-to for people trying to skirt sanctions or illicit use.
One Hong Kong provider alone saw more than $355m in dollar stablecoins flow into its card-linked wallets.
The problem? Nearly 70% of providers don't have strong ID checks, making it easy for bad actors to slip through.