Tech
Fake and Deep-Search Scams Could Cost Crypto Industry $25 Billion in 2024, Bitget Warns
Deepfakes have caused enormous 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 deepfake scams it could cost the cryptocurrency industry dearly $25 billion in 2024 alone. This figure will more than double the losses recorded last year.
Deepfake Attacks Rise in Cryptocurrency World
Deepfakes involve the creation of fake videos and images that leverage artificial intelligence, machine learning tools, and other complex technologies to impersonate influential figures and scam money from unsuspecting victims.
On a June 27th relationshipCryptocurrency exchange Bitget has shared some scary numbers, noting that deepfakes will be grow 245% globally by 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 translated into $6.3 billion in cryptocurrency losses in the first quarter of 2024 alone.
Gracy Chen, CEO of Bitget, says deepfakes are profoundly affecting 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 are using deepfakes to make projects appear real and trustworthy. These scammers impersonate influential figures, creating projects that appear genuine with illusory credibility. false capitalization projectionAs a result, investors trust them, investing huge amounts of funds without doing proper due diligence.
For example, famous people like Michael Saylor are common targets for scammers. In January of this year, Saylor revealed that his team destroyed up to 80 fake AI-generated videos of him every day. These videos often promote Bitcoin scams to extort money from unsuspecting victims.
It is important to note that Deepfakes are also used for blackmail, identity fraud and market tricks. For example, fake news or statements from a famous influencer can change token prices, but they are not as common as cryptocurrency scams.
The possible future of deepfakes in crypto crimes
Experts fear that deepfakes will only get worse as the crypto space evolves. And without effective enforcement measures, Bitget says deepfakes could be used in 70% of cryptocurrency 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 a real person has approved the scam. 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 major concern is fake identities used to bypass security checks. Lee encourages exchanges to integrate better security measures such as “Proof of Life”.
These measures verify whether a user is authentic by asking for live actions like blinking or moving. It’s not perfect, but it helps.
In particular, Lee warns all new Bitget users about deepfakes. He said that Bitget uses artificial intelligence to quickly detect fakes. However, as technology improves, the fight against deepfakes will become more and more challenging, so everyone must be careful and continue to learn about these threats.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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