Losses attributed to crypto crimes involving the use of deepfakes are projected to surpass $25 billion in 2024. According to the latest Bitget research study, these losses are expected to continue rising if no regulatory intervention is introduced to curb this type of fraud. Educating users and implementing comprehensive legal and cybersecurity frameworks globally are crucial steps in combating criminals who exploit this tactic.
Q1 Crypto Losses Attributable to Deepfakes Exceed $6 Billion
According to the latest Bitget Research report, cryptocurrency losses associated with deepfake-related illegal transactions are on the rise. In 2024 alone, projected losses from such transactions are expected to exceed $25 billion. During the first quarter of 2024, losses attributed to deepfakes reached $6.28 billion, nearly half of the $13.81 billion lost in the entire year of 2022.
The report emphasizes the need for regulatory intervention to curb this type of fraud and prevent further erosion of users’ trust in the industry. Although losses related to deepfakes decreased in 2023, the report highlights that the share of illegal transactions involving deepfake technology remains consistent across quarters.
Interestingly, the study also reveals a correlation between deepfake-related illegal transactions and the fluctuations of the Bitcoin Greed and Fear Index. During bullish markets, incidents where deepfake technologies are used for criminal purposes tend to increase. For instance, the share of crypto crimes involving deepfakes spiked in Q1 of 2024, coinciding with a period when bitcoin (BTC) reached a new all-time high.
Global Cooperation Key to Combating Deepfake-Related Crypto Crimes
Gracy Chen, the CEO at Bitget, underscores the importance of raising awareness about deepfakes within the crypto industry. Educating users and implementing comprehensive legal and cybersecurity frameworks globally are crucial steps in combating criminals who exploit this tactic.
“Deepfakes are moving into the crypto sector in force and there is little we can do to stop them without proper education and awareness. The vigilance of the users and their ability to discern scams and fraud from real offerings is still the most effective line of defense against such crimes until a comprehensive legal and cybersecurity framework is in place on a global scale,” Chen said.
She disclosed that Bitget has already partnered with the blockchain security firm Slowmist and other collaborators to achieve this objective. However, over time, the report noted that while putting in place regulatory frameworks and enhancing the technological capabilities of industry players is key to halting this scourge, it argued that “meaningful change can only be achieved through international cooperation.”
The report warned that without this cooperation, criminals using this technology will simply move their operations from one country to another.
Source: Bitcoin
