30s Summary

Crypto expert Ilya Brovin warns of increasing use of deepfake technology in crypto scams. The use of deepfakes in the crypto industry rose by 654% between 2023 and 2024, targeting crypto enthusiasts through hyper-realistic images of celebrities. These scams manipulate investors into putting their money into fraudulent crypto websites. As the technology becomes more accessible and convincing, it is being utilized for criminal activities like identity theft and fraud. Brovin suggests that awareness is key in combatting these scams, calling for stronger checks and regulations on social media sites and cryptocurrency exchanges.

Full Article

Here’s a heads up from Ilya Brovin, a real crypto whizz who works at Sumsub. He has 20 years of experience in the finance world and boasts a degree in economics and finance and an MBA from Harvard Business School.

You guys might remember the Bitfinex hack in 2016, and the Coincheck hack in 2018. These events, plus a few others, have given the crypto scene a bit of a bad name.

In 2024, a new danger showed up: crypto scams using ‘deepfakes’ of celebs – super convincing pictures of famous folks designed to trick us into thinking they’re real, when they’re actually not. These scams use these realistic deepfakes to fool crypto enthusiasts into parting with their cash.

Deepfake tech’s getting so credible, it can even trick some of the experts. This means us ordinary folks are at risk of becoming victims – not only losing money, but also feeling like we can’t trust what we see.

Deepfake technology has come a long way in a short time. Scammers have used deepfakes of Elon Musk to trick people into giving money to bogus crypto websites. Between 2023 and 2024, the use of deepfakes in the crypto world rocketed by a whopping 654%, with 74% of all detected deepfakes in 2024 targeting the crypto industry.

Originally just used for laughs or art, deepfakes are now being used in darker ways, like identity theft, blackmail, and fraud. The crypto community – appealing due to its wild west-like absence of regulation and the possibility of big profits – has been targeted by high-tech tricksters looking for a quick buck.

Because the crypto scene relies heavily on digital interactions and high value deals, it’s particularly vulnerable to deepfake scams. Fake personas using deepfakes can be used to trick people into investing in sham schemes. Even non-celebrities’ identities are at risk from these scams as they try to steal access to digital wallets.

As deepfakes become more common, from political ads to general mischief-making, we need to take this new risk seriously.

We’ve moved on from laughable deepfakes full of weird mistakes. Now, they’re scarily convincing – especially as many of us spend so little time examining posts on social media. Spotting a deepfake with the naked eye can be tough, though there are some giveaways: badly synced lip movements, strange skin textures, odd movements, and unrealistic lighting.

Awareness is key. In 2024, lawmakers in 15 US states brought in laws to stop misinformation and deepfakes, especially in political campaigns. But most people don’t see much political content, so it’s down to us to educate ourselves.

Social media sites need to do their part too, clamping down on the spread of deepfakes and misleading information.

But crypto fraud has more layers. It’s not just about celebs enticing people to shady exchanges – ordinary users can get their identities stolen too. So, crypto exchanges also need to up their game, doing more checks (particularly ‘Know Your Customer’) and noticing if anything suspicious is going on.

As deepfakes keep improving, we all need to be on our toes. We must be aware of the risks, and trust in our exchanges. Lawmakers, companies, and us users all need to work together to limit the impact of crypto fraud.

Source: Cointelegraph