Crypto Investors Can Lose $25B to Deep Fakes in 2024, Says Bitget

As a researcher with a background in cryptocurrency and cybersecurity, I find the recent report from Bitget Research on deep fake scams and crypto losses deeply concerning. The surge in deep fakes worldwide and their impact on the crypto industry is alarming, with losses totaling $6.3 billion during the first quarter of this year alone.

According to Bitget Research’s recent findings, I, as a crypto investor, face a potential loss of $25 billion this year due to deep fake scams and associated risks. The report published on June 27th reveals an alarming surge of 245% in the global prevalence of deep fakes so far in 2024.

In Q1 of this year, the countries with the highest number of detected deep fakes were China, the USA, Vietnam, Germany, Ukraine, and the UK. At the same time, there was a significant increase of 217% in deep fakes within the crypto industry compared to Q1 of 2023.

According to Bitget’s research group, deepfake incidents caused approximately $6.3 billion in cryptocurrency losses during the initial quarter. This amount could potentially rise to $10 billion by the year 2025.

In the crypto sphere, deepfakes are gaining momentum with alarming speed. Regrettably, our current defenses seem insufficient to curb this trend without enhanced education and awareness.

Photo: Bitget Research
The interesting thing is that deep fake fraudsters have been employing the same tactics over the years.
Approximately 60% of crypto scams involving deep fakes have been attributed to fraudulent projects, phishing attacks, and Ponzi schemes. Deep fake technology is frequently used in these schemes to mislead cryptocurrency investors. (Bitget Research’s findings)
Using false identities of prominent individuals, these scams deceive potential investors by giving an impression of legitimacy and adequate funding for their projects. Consequently, they attract significant investments without undergoing proper background checks.
Michael Saylor, executive chairman of MicroStrategy, hasn’t earned any extra points for identifying the source of the deceit. Recently, his team successfully eliminated around eighty AI-produced fake videos depicting him that had surfaced earlier this year in January.
Deep Fakes Can Contribute to 70% of Crypto Crimes
According to Bitget’s prediction, deep fakes could be responsible for as much as 70% of cryptocurrency-related crimes by the year 2030 if adequate countermeasures against these deceptive technologies are not implemented. As per the analysis of Bitget’s research head, Ryan Lee.
Malicious actors are becoming more cunning in manipulating their targets by using falsified images, recordings, and videos. For example, a convincing video masquerading as a trusted individual could significantly impact fraud schemes, while a fabricated video featuring an influential figure might bolster credibility for a deceptive investment proposal.
One potential way to rephrase this statement could be: Deep fake technology poses an urgent issue for Lee, particularly the use of AI-powered voice imitators that allow scammers to deceive users by impersonating loved ones and soliciting money. Moreover, deep fakes can circumvent Know Your Customer (KYC) protocols, granting unauthorized access to individuals’ financial resources.

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2024-06-27 16:19