Crypto Crime Using Deepfakes Predicted to Top $25 Billion in Losses in 2024
Crypto Crime– Crypto crimes involving deepfakes are expected to exceed $25 billion this year, according to a study by the crypto derivatives exchange and copy trading platform Bitget.
The study noted that deepfakes generated by artificial intelligence are increasingly being used by criminals. Losses in the first quarter alone reached $6.28 billion, almost half of the total $13.8 billion lost in the entire year of 2022.
Criminals often use deepfake technologies to impersonate influential figures, gaining the trust of crypto users. This creates an illusion of credibility and significant project capitalisation, luring investments from victims who don’t conduct thorough due diligence.
Deepfakes are becoming a major force in the crypto sector, and there’s little we can do to stop them without proper education and awareness, said Bitget CEO Gracy Chen. User vigilance and the ability to distinguish scams from legitimate offerings remain the most effective defenses against such crimes, until a comprehensive legal and cybersecurity framework is established globally.
FAQs
What is a deepfake and how is it used in crypto crime?
A deepfake is a synthetic media created using artificial intelligence to manipulate visual and audio content, making it appear real. In crypto crime, deepfakes are used to impersonate influential figures, creating trust and credibility to lure victims into fraudulent schemes.
Why are deepfake-related crypto crimes expected to reach over $25 billion in 2024?
The increase is due to the growing sophistication of deepfake technology and its widespread use by criminals to deceive investors. The study by Bitget highlights a significant rise in financial losses attributed to these scams.
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