Deepfake Technology Fuels Crypto Scams

Recent insights from Bitget Research reveal a notable spike in deepfake-related fraud. The findings show a dramatic 245% rise in malicious activities using deepfakes in 2024 alone. These technologically advanced deceptions, which often involve fabricated videos of celebrities, are increasingly targeting unsuspecting investors, leading to substantial financial losses.

How Widespread is Deepfake Fraud?

Deepfake technology, which manipulates images and videos to create lifelike counterfeit content, is instrumental in executing fraudulent schemes. The report indicates that since early 2022, users have suffered losses totaling $79.1 billion due to cyberattacks involving deepfakes. The financial damage has been escalating yearly; in 2024, the losses surged by 245%. Bitget projects that if the trend continues, deepfake fraud could inflict damages of up to $10 billion per quarter by 2025. Access NEWSLINKER to get the latest technology news.

Bitget’s CEO, Gracy Chen, emphasized the urgent need for awareness and education to combat these frauds until a comprehensive global cybersecurity and legal framework is established. She underscored that users’ alertness and discernment are crucial in identifying and preventing such scams.

What Role Does Social Engineering Play?

Social engineering and bot fraud contributed to 14.21% of all deepfake-related crimes in Q1 2024, resulting in estimated losses of $2.03 billion. Analysts warn that without effective countermeasures, the incidence of malicious technology in the crypto sector could surge by 70% by early 2026.

Practical Tips for Investors

  • Verify the authenticity of celebrity endorsements before making any investments.
  • Avoid sharing sensitive information on suspicious platforms or with unknown entities.
  • Stay informed about the latest trends and techniques in deepfake technology.
  • Utilize advanced cybersecurity tools to detect and prevent fraud.

The rise of deepfake technology has paralleled the increasing popularity of tokens associated with well-known personalities. Recently, the launch of numerous memecoins featuring both real celebrities and impersonators has sparked heated discussions in the crypto community about market manipulation and the ethical concerns of using celebrity influence in cryptocurrency promotions. Entrepreneurs like Elon Musk have become frequent targets. For instance, a five-hour deepfake live stream on YouTube falsely depicted a Tesla event with Musk’s AI-generated voice, enticing viewers to invest in Bitcoin, Ethereum, or Dogecoin with the promise of doubled returns.

The video has since been taken down, but this incident highlights the persistent threat posed by deepfake technology in the crypto space. As fraudulent schemes grow more sophisticated, the need for heightened vigilance and effective preventive measures becomes increasingly imperative.

You can follow our news on Telegram, Twitter ( X ) and Coinmarketcap
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.