Tech
Deep Fake Scams Could Cost Crypto Industry $25 Billion in 2024, Bitget Warns
Deepfakes have caused massive financial damage, with up to $79.1 billion stolen through this technique since 2022. It has now become a growing threat in the cryptocurrency industry.
Bitget Research warns this deepfake scams could be costly to the cryptocurrency industry 25 billion dollars in 2024 alone. This figure will more than double the losses recorded last year.
Deepfake Attacks Rise in Cryptocurrency World
Deepfakes involve creating fake videos and images using artificial intelligence, machine learning, and other sophisticated technologies to impersonate influential people and defraud unsuspecting victims of money.
On June 27th relationshipCryptocurrency exchange Bitget has shared some scary numbers, stressing that deepfakes will grow 245% worldwide in 2024.
According to exchangeChina, the United States, Germany, Vietnam, and Ukraine recorded the highest number of deepfakes in the first quarter of 2024.
Additionally, the cryptocurrency world has seen a 217% increase in deepfake scams compared to the first quarter of 2023. According to the report, this increase has resulted in $6.3 billion in cryptocurrency losses in the first quarter of 2024 alone.
Gracy Chen, CEO of Bitget, says deepfakes are eating deep into the cryptocurrency sectorand proper education and awareness will help combat it.
Most losses come from fake projects, phishing and Ponzi schemes, where perpetrators use deepfake technology to appear authentic and gain investor trust. Over the past two years, these scams have accounted for more than half of all cryptocurrency thefts linked to deep fakes.
Bitget says scammers use deepfakes to make projects appear real and trustworthy. These scammers impersonate influential personalities, devising schemes that appear authentic with illusory credibility and project false capitalizationAs a result, investors trust them, investing large amounts of funds without carrying out proper due diligence.
For example, celebrities like Michael Saylor are common targets for scammers. In January of this year, Saylor revealed that his team has destroyed up to 80 AI-generated fake videos of him every day. These videos often promote Bitcoin scams to fool unsuspecting victims.
It is important to note that deepfakes are also used for blackmail, identity fraud, and market trickery. For example, fake news or statements from a famous influencer can change the price of tokens, but they are not as common as crypto scams.
The possible future of deepfakes in crypto crimes
Experts fear deepfakes will get worse as the crypto space evolves. And without effective enforcement measures, Bitget says deepfakes could be used in 70% of cryptocurrency-related crimes by 2026.
Ryan Lee, an analyst at Bitget Research, says criminals are becoming more innovative with fake videos, images and audio, making it appear as if the real person approved the scam project. Impersonating someone the victim trusts or an influential figure can boost investor confidence.
A big concern is AI-powered voice fakes; scammers can calling people pretending to be their family. They ask for money and it seems natural. Another primary concern is false identities used to bypass security checks. Lee encourages exchanges to integrate better security measures such as “Proof of Life.”
Such measures test whether a user is authentic by asking for live actions such as blinking or moving. It’s not perfect, but it helps.
In particular, Lee warns all new Bitget users about deepfakes. He said Bitget uses artificial intelligence to quickly spot fakes. However, as technology improves, the fight against deepfakes will become more and more challenging, so everyone must be careful and remain aware of these threats.
Disclaimer: The views expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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