Bitget Research Reveals Rampant Growth in Deepfake-Based Crypto Scams

Bitget Research revealed a surge in deepfake fraud, with a 245% increase in malicious technology usage in 2024, resulting in $79.1 billion in losses since 2022. These frauds, often involving deepfake videos of celebrities, aim to deceive investors, causing significant financial harm. Bitget warns of potential $10 billion losses quarterly by 2025. Crypto users are urged to be vigilant, as deepfake crimes now account for 14.21% of all crypto incidents in Q1 2024, with $2.03 billion in losses. The crypto industry may see a 70% rise in such incidents by 2026 without effective measures.

The crypto industry is grappling with an alarming surge in deepfake fraud, with a 245% increase in malicious technology usage reported in 2024 [1]. This troubling trend, according to a detailed report by Bitget Research, has resulted in an staggering $79.1 billion in losses since the beginning of 2022 [1].

Deepfake fraud, which often involves the use of deepfake videos of celebrities to deceive investors, now accounts for 14.21% of all crypto incidents in the first quarter of 2024, resulting in $2.03 billion in losses [1]. The report warns of potential quarterly losses of around $10 billion by 2025 [1].

The use of deepfakes in the crypto sector has become increasingly sophisticated. According to the report, criminals are employing a range of techniques, including social engineering and the use of bots. They are also leveraging advanced AI technologies, such as behavioral pattern recognition, voice replacement, machine learning, and face replacement algorithms, to impersonate identities and carry out fraudulent activities [1].

Despite governmental efforts, the fight against deepfake fraud in the crypto sector remains an uphill battle. Bitget Research emphasizes the importance of user education and awareness as the most effective line of defense against such crimes [1].

To help combat deepfake fraud, Bitget launched the Anti-Scam Month campaign in June. The campaign, in partnership with Slowmist and other collaborators, aims to release a series of educational articles and posters, host Twitter Spaces with security tips, and place outdoor safety warning billboards [1].

The report highlights the urgent need for a comprehensive legal and cybersecurity framework to address deepfake fraud in the crypto sector on a global scale. Until then, users are urged to remain vigilant and exercise caution when navigating the crypto market.

References:
[1] Bitget Research. (2024, June 26). Bitget Research Reveals Surge in Deepfake Fraud, Warns of Potential $10 Billion Quarterly Losses by 2025. [https://www.bitget.com/blog/articles/bitget-research-deepfake-report-2024-press-release]