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Beyond Videos and Audio

AI Deepfake Scams Are Targeting Crypto Holders: Security Firms Warn

Last updated:

Mackenzie Ferguson

Edited By

Mackenzie Ferguson

AI Tools Researcher & Implementation Consultant

AI-powered deepfake scams targeting crypto wallets are on the rise, with security experts urging users to protect their digital assets. On September 4, Gen Digital reported that malicious actors using AI deepfake scams defrauded crypto holders out of over $5 million in the second quarter of 2024. The attack method, employed by a group called 'CryptoCore,' is becoming more sophisticated and could extend beyond video and audio. Security firms emphasize the importance of community awareness and education to combat these evolving threats.

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AI-powered deepfake scams are increasingly targeting crypto holders, sparking warnings from security firms about evolving threats. These sophisticated scams, which leverage artificial intelligence to create deceptive content, are not just limited to video and audio fraud. On September 4th, 2024, software firm Gen Digital highlighted a significant rise in such attacks during the second quarter of the year. The notorious scammer group 'CryptoCore' has already swindled over $5 million in cryptocurrency through AI deepfakes.

    Though $5 million might seem insignificant compared to other forms of crypto theft, security experts believe the potential for AI deepfake scams to grow is considerable. Web3 security firm CertiK anticipates these scams will become more sophisticated, potentially moving beyond the realm of videos and audio recordings. A spokesperson from CertiK explained that AI deepfakes could even be used to bypass facial recognition technologies, granting hackers access to crypto wallets.

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      As the threat of AI-powered scams escalates, members of the crypto community must become increasingly vigilant. Luis Corrons, a security evangelist at Norton, emphasized the appeal of cryptocurrency to hackers due to its high financial rewards and comparatively low risks. He noted that the absence of stringent regulations in the crypto space provides cybercriminals with more opportunities and fewer legal repercussions.

        Despite the rising threat of AI-powered attacks, security professionals believe that users can take steps to protect themselves. According to CertiK, education is a critical first line of defense. Crypto users should be informed about the nature of these threats and the tools available to counteract them. Additionally, being cautious of unsolicited requests and communications can help avert potential scams.

          Corrons also pointed out several red flags that could indicate a deepfake scam. Unusual eye movements, awkward facial expressions, and inconsistent body movements are tell-tale signs of AI-generated content. Lack of proper emotional expression or mismatched audio can also signal a deepfake. For instance, if a person's facial expressions do not align with their supposed speech, it could indicate the presence of a deepfake.

            In conclusion, as AI technology continues to advance, so do the tactics of cybercriminals. It is imperative that members of the crypto community stay informed and vigilant to protect their digital assets. By recognizing the warning signs of AI deepfakes and adopting protective measures, users can reduce their risk of falling victim to these sophisticated scams.

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