The emergence of deepfakes poses a growing threat to the cryptocurrency industry, as advanced artificial intelligence (AI) technology creates counterfeit identities at an alarming pace.
To address this issue, exchanges like Bitget have joined forces with Sumsub, a top-tier provider of Know Your Customer (KYC) verification services, in a bid to bolster security measures and safeguard users.
Bitget announced that the collaboration aims to protect its 25 million global users by identifying and thwarting deepfake scams with an accuracy rate exceeding 99%. Sumsub will offer Bitget services such as identity verification, facial biometrics, non-doc verification, and database validation.
With deepfake incidents in the crypto sector increasing by 217% from the first quarter of 2023 to the first quarter of 2024, and a staggering 245% rise across all industries, Sumsub’s AI-powered deepfake detection and fraud prevention capabilities will play a crucial role in ensuring both companies uphold high security standards.
The fear surrounding deepfakes is well-founded, as these sophisticated identity frauds have the potential to circumvent even the most robust security protocols, leaving unsuspecting users at risk of financial devastation. Consequences may include identity theft, drained accounts, and a loss of confidence in the crypto ecosystem.
As the digital landscape continues to evolve, AI-generated deepfakes present significant challenges to the KYC framework, affecting various sectors, including cryptocurrency. OnlyFake, a platform that recently made headlines for reportedly bypassing KYC protocols on several prominent cryptocurrency trading platforms, serves as a prime example.
Bitget’s CEO, Gracy Chen, emphasized the importance of combating deepfakes within the crypto ecosystem, especially in light of recent incidents that have exposed vulnerabilities within the industry.
In a separate case, a fraudulent crypto exchange platform utilized AI-generated videos of Elon Musk and misleading information to promote crypto trading services, prompting Hong Kong authorities to take action against the exchange responsible for displaying such deceptive content.
Furthermore, the widespread availability of AI deepfake technology has raised concerns among leaders in the cryptocurrency sector, particularly regarding the reliability of video verification processes used for identity validation.
Despite originating in the crypto realm, the threat of deepfakes extends beyond the industry, impacting sectors such as finance, healthcare, and government. As AI technology advances, deepfakes are expected to infiltrate various industries, necessitating proactive measures to combat their proliferation.
Recent incidents, such as robocalls employing the voice of U.S. President Joe Biden to dissuade New Hampshire citizens from voting in a state primary election, have prompted regulatory action to ban the use of AI-generated voices in automated phone scams under U.S. telemarketing laws.
Cointelegraph attempted to reach Bitget for further details on its partnership with Sumsub but had not received a response at the time of publication.
In the latest edition of Real AI & crypto use cases, Issue No. 4 delves into the innovative application of blockchain technology in combating AI-generated fakes.