Crypto needs to increase defenses against 654% spike in deepfake scams

Opinion by Dr. Amelia Hartman, Chief Cybersecurity Officer at Blockchain Banking. With over 30 years of experience in cybersecurity, computer science, and artificial intelligence, I’ve witnessed firsthand the evolution of digital threats. I hold a Ph.D. in Computer Science from MIT and have been recognized as one of the top women in technology by Forbes.

Deepfakes have become an unsettling reality in our digital world. From impersonating celebrities to manipulating political campaigns, these convincing forgeries are causing chaos and confusion across industries – including crypto. The rise of deepfake scams has been staggering, with a 654% increase from 2023 to 2024, making the crypto community a prime target.

The advancements in deepfake technology have made it increasingly difficult to distinguish authentic content from fake – even for experts. The days of easily spotting a deepfake with a shark-toothed smile are long gone. Now, we must rely on subtle clues like unnatural movements or inconsistent lighting that may go unnoticed at first glance.

The crypto sector is particularly vulnerable due to its reliance on digital interactions and the high value of transactions. Scammers use deepfakes to trick individuals into investing in fraudulent schemes, as well as to steal identities for accessing digital wallets. It’s a wild west out there, and we need to tame it before the chaos gets out of hand.

As with any threat, awareness is key, and education on these signs is crucial. Lawmakers, social media platforms, and crypto exchanges must take responsibility for preventing the spread of deepfakes and protecting users from falling victim to these scams.

On a lighter note, remember: if it looks like a duck, swims like a duck, and quacks like a duck… chances are it’s a deepfake!

Article by Ilya Brovin, the head of growth at Sumsub. Ilya is well-versed in crypto transactions and regulations globally, with approximately two decades of experience in finance and quality assurance. He possesses a bachelor’s degree in economics and finance, as well as an MBA from Harvard Business School.

Over the past few years, the cryptocurrency market has experienced several setbacks to its reputation, most notably the Bitfinex hack in 2016, the Coincheck hack in 2018, and other contentious occurrences. These events have put a strain on the industry’s public image.

2024 saw a fresh type of danger arise: cryptocurrency scams involving “deepfake celebrities” – images or videos that seem authentic but are actually falsified. These scams employ advanced deepfake technology to depict well-known figures, tricking crypto enthusiasts and exploiting the unwary by committing fraud, deceiving, and causing confusion among less tech-savvy individuals.

With deepfake technology becoming more and more realistic, even for experts to discern, the danger posed by deepfake scams extends beyond just financial losses; they could potentially challenge our understanding of what’s real. The old adage “If it walks like a duck…” might soon lose its relevance.

The evolution of deepfake technology

Deepfake technology has rapidly evolved over a short period, making it progressively challenging to discern genuine pictures or videos from forged ones. For instance, deepfakes featuring Elon Musk have been frequently employed in cryptocurrency scams, where his image is used to promote fraudulent crypto websites and gather tokens from unsuspecting victims. The use of deepfakes in the crypto market experienced a staggering surge of 654% between 2023 and 2024, with 74% of all detected deepfake attempts in 2024 occurring within the crypto industry.

At first developed for amusement and creative expression, deepfakes have been unfortunately misused for malicious activities such as identity theft, cybercrime, extortion, manipulation, and other illicit purposes. An increasing concern is the undermining of trust in various sectors, including media and law, due to questionable visual or audio evidence becoming more common.

As a researcher delving into the world of cryptocurrencies, I’ve noticed an unfortunate trend: fraudsters have identified our community as a prime hunting ground. With its potential wealth and members who are tech-savvy, the crypto sphere has become a lucrative target for these cunning swindlers seeking quick profits. The allure and novelty surrounding cryptocurrencies—their perceived freshness, excitement, and promise of substantial riches—unfortunately fosters an environment that is conducive to scams.

In the world of cryptocurrencies, there’s a heightened risk of deepfake deceit due to its predominantly digital nature and high-valued transactions. Scammers exploit this environment by crafting authentic-looking personas of prominent figures or everyday people using deepfakes. Their goal is to lure unsuspecting investors into bogus investment opportunities, or they might use deepfakes of regular folks to pilfer their identities and infiltrate their digital wallets.

Deepfakes, which range from influencing political campaigns to tampering with individual safety measures and even causing trouble or disorder, are increasingly common and require our immediate attention as a growing concern.

Prevention and detection: What’s next?

In the present day, we’re past the era of deepfake videos depicting people with sixteen fingers or shark-like teeth. Today’s deepfakes are extremely convincing, especially considering our brief attention spans on social media platforms. A video might only be viewed for ten seconds, and an image even less so, particularly when a well-known figure is the subject. This is because there is an implicit trust in a familiar face.

Spotting deepfakes without specialized tools may prove difficult, yet there are subtle hints that could aid recognition:

Bad sync between lips and audio that looks like bad audio dubbing.

Unnatural skin texture, features and mannerisms, or other “uncanny” appearances.

Odd movements, inconsistent lighting, or strange text or backgrounds that, upon closer inspection, could not be real.

As with any emerging threat, awareness is key, and education on these signs is crucial.

In 2024, legislators in 15 U.S. states proposed bills to counter misinformation and deepfakes, focusing on their exploitation during political campaigns, due to the potential harm to the public. Although it’s commendable that politicians are addressing the deepfake problem and aiming to limit its application, educating consumers is crucial since many individuals do not frequently interact with political content.

On social media outlets, it’s essential they take a stand against the dissemination of manipulated content known as deepfakes. Strict penalties should be enforced for users who propagate false information, and advanced detection systems need to be put in place to identify and block further distribution of misinformation.

Apart from the danger of deceptive deepfake celebrity images leading users towards fraudulent cryptocurrency exchanges, there’s an additional layer of intricacy regarding crypto fraud and deepfakes. Regular users are also vulnerable to identity theft due to the use of deepfakes, especially in this social media era where numerous individuals share sufficient information that can be exploited by scammers with varying levels of expertise.

It’s essential for cryptocurrency exchanges to implement thorough checks, particularly KYC (Know Your Customer) procedures, and monitor transactions for unusual patterns. The growing threat of crypto fraud, particularly that associated with deepfakes, necessitates joint action from both governments and businesses. This can be achieved by setting up protective frameworks and implementing safeguards to shield all users.

As a researcher, I want to clarify that this analysis serves as a source of general knowledge and should not be construed as legal or investment advice. The perspectives, assumptions, and conclusions expressed here are solely mine and may not align with those held by CryptoMoon.

2024-10-29 18:16

The evolution of deepfake technology

Prevention and detection: What’s next?

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