Scammers are creating fake tokens with hidden backdoors to attack AI-powered trading bots engaged in sniping, according to Kan Li from CertiK in an interview with Decrypt.

These trading bots monitor on-chain activity to detect new tokens and purchase assets within seconds of liquidity appearing, profiting from subsequent price increases.

Li emphasized that AI bots are “not dumb” and are programmed to assess security risks. However, scammers successfully exploit a “bait-and-switch” tactic.

Fraudsters promote a new token within trading communities and, after a few purchases, execute a rug pull.

According to the expert, this type of fraud targeting automated software has reached a “massive scale” and could result in “tens of millions of dollars” in losses. Scammers operate without fear of legal consequences and “just keep killing” bots, taking advantage of the lack of major victims.