AI-Driven Fraud Targeting Crypto on the Rise
AI-driven fraud is becoming increasingly prevalent in the crypto industry, with 88% of all deepfake cases detected in 2023 targeting the sector, according to research by Sumsub. This makes crypto the primary target for hackers, followed by fintech at 8%. The findings were published by Sumsub, a company that specializes in online identity verification tools.
Global Increase in Deepfake Cases
The report reveals a tenfold increase in the number of deepfake cases detected globally across all industries between 2022 and 2023. North America saw a staggering surge of 1,740% in deepfake cases, making it the primary target for hackers. Asia Pacific experienced a 1,530% increase, Europe (including the UK) saw a rise of 780%, and the Middle East and Africa experienced a surge of 450%. Latin America also saw an increase of 410% in deepfake cases.
Countries Most Affected by Deepfakes
The country most affected by deepfakes is Spain. The report also highlights that the UAE passport is the most commonly faked document globally. Latin America has seen an overall increase in fraud across all countries in the region.
Recent Hacks and Theft in Crypto Industry
The crypto industry has recently faced several incidents of hacks and thefts. One example is an attacker who manipulated the internal exchange price of oPEPE and stole over $2 million from Onyx protocol. Additionally, Poloniex cryptocurrency exchange was targeted in a hacker attack. Poloniex’s owner, Justin Sun, confirmed the hack and pledged to compensate users for their losses.
Continued Efforts to Cover Tracks
Earlier this year, a crypto wallet linked to the largest exchange by market capitalization, Binance, was attacked. The cybercriminal quickly exchanged the stolen funds for Ethereum (ETH) and used services like FixedFloat and ChangeNow to obfuscate their tracks.
Hot Take: Protecting Against AI-Driven Fraud in Crypto
As the crypto industry becomes an increasingly attractive target for AI-driven fraud, it is crucial for individuals and businesses to prioritize cybersecurity measures. Implementing robust identity verification tools and staying vigilant against potential threats can help protect against deepfake attacks and other forms of fraudulent activity. By staying informed about the latest security practices and remaining proactive in safeguarding your crypto assets, you can mitigate the risks associated with AI-driven fraud.
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