Artificial intelligence has a love-hate relationship with cryptocurrency and blockchainย tech technology: although the advent of ChatGPT has brought awareness of the full potential of Artificialย Intelligenceย (AI) in the world of trading, big data, and smart contracts, there are still some dangers that the cryptocurrency community hasย toย distance itself from.
Inย particular, Binanceย Cryptoย exchange thinksย that through deepfakes, some malicious users are able to evade KYC verification systems by scamming corporations and investors.
Cryptocurrency alert: artificial intelligence and deepfakes
1st โred flagโ in the digitalย currency world regarding the much-loved artificial intelligence technology.
Reportsย by Jimmy Su, head ofย safety at Binanceย Cryptoย exchange, theย following wave of scams for the industry will be spearheaded by deepfakes, which are spreading thanks to Artificialย Intelligenceย (AI) software.
Through machine learning, deepfakes are able to recreate highly plausible (but fake) images or videos from real content on networks.
Inย particular, these fake versions highly realistically recreate features, movements of a face, body, or even faithfully reproduce a particular voice.
Asย aย result, cyber-criminals are impersonating some of the prominent figures in the cryptocurrency community by carrying out well-thought-out scams.
Despiteย theย factย that this technique can be honestly and advantageously applied in daily life and work, bringing advantages to those who use it, it can be both detrimental to cryptocurrency corporations and investors.
Last August, Binanceโs communications manager Patrick Hillmann warned that a group of attackers was recreating a deepfake version of him from video interviews on the web and from his Television appearances.ย
The โdeepfakeโ version of Hillmann was then used in online meetings on Zoom with cryptocurrency project teams who were promised the price of cryptoย tokens in exchange for payment.
The only way to combat the spread of fraud of this kind, reportsย by Jimmy Su, is to educate users by pointing out the fallacies that artificial intelligence presents in recreating content.
Binanceย Cryptoย exchange believes artificial intelligence can compromise the KYC verification systems of cryptocurrency projects
The cryptocurrency exchange Binanceย Cryptoย exchange and its chief security officer believe that artificial intelligence and deepfakes can compromise KYC verification systems by putting usersโ data and funds at risk.ย
This is not specific to Binanceย Cryptoย exchange, where there are sophisticated verification automations, but moreย traditionally to all crypto-themed projects where thereย is a must verify the identity of individuals through the classic โKnow your customerโ (KYC) procedure.
The modus operandi for the evasion of these systems is the following: 1st they search online for some photos of the victim, then thanks to Artificialย Intelligenceย (AI) tools they start to produce highly realistic videos of which one canย potentially not notice the fake characters.
Jimmy Su argues that deepfakes are spreading mainly for the purpose of implementing scams, especially for cryptocurrency enthusiast communities.
Nonetheless, he believes at the same time that the overall quality of the fake videos are not isย still such that they can fool human verification.
Binanceย Cryptoย exchange intendsย to publish a series of blog posts to inform users about management of danger methods.
In the 1st content published by the exchange, it was indicatedย that the company uses artificial intelligence and machine learning algorithms to detect anomalous login patterns and transactions on the platform.
Hence, it is possible to exploit Artificialย Intelligenceย (AI) for non-fraudulent objectives, but thereย is a must be careful about the development of this technology because itย canย potentially create wholeย lotย of damage in the cryptocurrency sector.
A Webย 3.0 security expert, in reference to deepfakes, thinksย that they mayย be misused in Ledgerโs new โRecoverโ update, where users can request the hardware building company to have the seed phrase sent to them if they lose it, after verifying their identity through KYC verification.
The best cryptocurrency assets that integrate Artificialย Intelligenceย (AI) technologies
More and more projects are emerging within the cryptocurrency market that integrate artificial intelligence technology into their business, in more or less concrete ways.
Sometimes the Artificialย Intelligenceย (AI) narrative and the appeal it has on the public are exploited to attract attention and generate trading volumes on cryptoย tokens that doย not essentially have fundamentals behind them, but only good management of communication and marketing programs.
Most of these use within their names words such as โGPT,โ โAI,โ โCHATBOT,โ sometimes mixing them with the brand name of some famous memecoin.
Nevertheless, the artificial intelligence tendency is allowing serious projects such as Singularity Net, The Graph, Render Cryptoย Token, Fetch.ai, and Injective to increase their capitalization.
In this regard, the โ Artificialย Intelligenceย (AI) and Big Dataโ section of digitalย currencies on CoinMarketCap has surpassed the $5 billion mark, with a wholeย lotย of increase from the beginning of 2023.
It is probably still asย well early to see a true explosion of the artificial intelligence tendency, given and seeingย as that there are few truly applied use cases in the cryptocurrency world excluding those where scams are attempted.
ChatBots, automation of trading systems, and big data detection are certainly important and will be one of the drivers by which theย following positiveย tendency markets will be undertaken.
Nonetheless, we still have a long way to go and must build more efficient products for a real revolution.
Meanwhile,ย we can have fun creating a deepfake video with the face of CZ (CEO of Binance) in which the delisting of your best friendโs favorite cryptocurrency is announced, followingย that sending him the fake content and seeing how he reacts.
Nonetheless, be careful toย delimit the prank in private channels without creating FUD within the community.
