Cryptocurrency investors need to be cautious of deepfake scams that are becoming increasingly sophisticated, making it difficult to discern fact from fiction. Deepfakes, which use AI to manipulate and alter original media, are being used by scammers to create fake videos of well-known personalities to execute scams. For example, a deepfake video of FTX former CEO Sam Bankman-Fried was used in a scam where users were directed to a malicious website promising to double their cryptocurrency. The volatile nature of the crypto industry causes panic among investors, leading them to fall prey to these scams without verifying the authenticity of the videos.
To spot a deepfake, David Schwed suggests watching the subject’s blinking eyes as a quick way to detect if a video is manipulated. Deepfakes are generated using image files sourced online, resulting in the subject usually having their eyes open. Therefore, the blinking of the subject’s eyes in a deepfake video needs to be simulated. Asking questions that only the real individual can answer is also a reliable way to identify deepfakes. Additionally, AI software is available that can detect deepfakes, and technological advancements in this area should be closely monitored. Following the age-old advice of “if it’s too good to be true, it probably is” can also help in avoiding falling victim to deepfake scams.
In a blog post last year, Binance’s chief communications officer Patrick Hillman revealed that a sophisticated deepfake scam was perpetrated using previous news interviews and TV appearances to fool crypto members. The scam involved creating a deepfake of Hillman to trick individuals into believing he had discussed potentially listing their assets on Binance.com. With 303 blockchain security incidents reported in 2022, including phishing, rug pulls, and other scams accounting for 31.6% of them, it is crucial for cryptocurrency investors to stay vigilant against deepfake scams.
According to Vlad Estoup, although deepfake technology is advancing rapidly, it is not yet “indistinguishable from reality.” However, with the continuous development of deepfake technology, investors need to be aware of the risks posed by these scams and take precautions to protect their investments. The COO of blockchain security firm Halborn emphasized the importance of verifying the authenticity of videos before making any hasty decisions based on the information presented in them. With the prevalence of deepfake scams in the crypto industry, it is crucial for investors to be cautious and vigilant in order to avoid falling victim to these deceptive practices.
As deepfake technology continues to evolve, the threat of scams targeting cryptocurrency investors using manipulated videos is on the rise. It is essential for investors to educate themselves on how to spot deepfakes and take necessary precautions to prevent falling victim to these scams. With the prevalence of deepfake scams in the crypto industry, staying informed and remaining vigilant is key to safeguarding investments from fraudulent activities. By following the advice of experts and utilizing available tools to detect deepfakes, investors can protect themselves against the growing threat of digital deception in the cryptocurrency space.
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