Deepfake Crypto Scams Poised to Skyrocket, Projected to Surpass $25 Billion in 2024
Harvey Hunter
Last updated:
June 27, 2024, 10:52 EDT
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2 min read
The financial toll from deepfake crypto scams is anticipated to soar beyond $25 billion in 2024, more than doubling the losses incurred last year, as reported by Bitget.
According to a June 27th report from Bitget, the crypto exchange highlighted a staggering 245% surge in global deepfake incidents this year, citing earlier findings from Sumsub.
Countries such as China, Germany, Ukraine, the United States, Vietnam, and the United Kingdom have experienced the highest concentration of deepfake occurrences, particularly in the first quarter of 2024. Meanwhile, the crypto industry has seen a dramatic 217% year-over-year increase compared to Q1 2023.
During Q1 2024 alone, losses surpassed $6.3 billion, prompting Bitget to emphasize this emerging challenge and foreseeing quarterly losses potentially reaching $10 billion by 2025.
Bitget speculates that within two years, deepfakes could account for over 70% of all crypto-related crimes.
Methods Employed by Deepfake Crypto Scams to Dupe Victims
Interestingly, fraudsters employing deepfake technology have maintained consistent tactics over time. They often exploit the identities of influential personalities and celebrities to endorse fraudulent investment schemes, creating an illusion of legitimacy among potential victims.
A recent instance involved more than 35 YouTube channels streaming the SpaceX launch with an AI-generated voice and deepfake of Elon Musk, urging viewers to send Bitcoin or Ethereum to a specified address with promises of doubling their investment. They assured viewers, “This is not a fake, this is a real giveaway. I personally guarantee it to you.”
In other cases, deepfake technology has been used to impersonate high-ranking executives during virtual meetings, leveraging their authority to authorize substantial transactions, impacting both corporate and crypto sectors.
The Future of Crypto Crime: Driven by AI
While deepfakes remain a predominant application of AI in crypto crime, the scope extends to various illicit activities. A recent report from Elliptic highlights the rise of AI-driven crypto crimes, ushering in a new era of cyber threats that encompass deepfake scams, state-sponsored attacks, and other sophisticated offenses.
AI has spurred significant innovations across multiple sectors, including crypto assets. These advancements have fostered projects poised to redefine the landscape of AI in the crypto realm. However, with emerging technologies comes the risk of exploitation by malicious actors seeking to capitalize on new developments for illicit gains.
Notably, dark web forums have explored the utilization of large language models (LLMs) for crypto-related crimes, utilizing AI’s capabilities to reverse-engineer wallet seed phrases and automate scams such as phishing and malware deployment.
Elliptic underscores the importance of early detection and monitoring of suspicious activities to safeguard long-term innovation and mitigate emerging risks effectively.
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