Crypto companies are facing a significant threat from audio and video deepfake attacks, according to a recent survey conducted by Regula. The survey revealed that 57% of crypto firms have fallen victim to audio fraud, while 53% have been targeted by fake video scams. These percentages are higher than the average impact proportion of 49% across different sectors.
The survey, which involved 575 businesses in various industries, highlighted the alarming growth in incidents of deepfake fraud since 2022. Audio deepfakes saw an increase from 37% to 49%, while video deepfakes rose from 29% to 49%. Crypto businesses are among the most affected by audio deepfake fraud, tying with law enforcement, and rank third in terms of video deepfake occurrences.
In addition to audio and video deepfake attacks, 53% of crypto companies reported synthetic identity fraud, where bad actors use deepfake methods to impersonate others. Despite reporting an average loss of $440,116 to deepfake frauds, slightly below the general average of $450,000, crypto firms still have the third-largest average losses, following financial services and telecommunications companies.
The survey also indicated that over 50% of businesses in all sectors consider deepfake fraud a moderate to significant threat. Particularly, 69% of crypto companies view deepfake video scams as a threat worth addressing, compared to the average of 59% across all sectors. This increased concern may be attributed to the rise in video deepfake scams observed this year.
For instance, in June, an OKX user claimed to have lost $2 million in crypto due to a deepfake scam involving generative AI. Additionally, blockchain security firm Elliptic warned investors about AI-generated deepfake videos related to the US elections in August. More recently, in October, Hong Kong authorities uncovered a deepfake scam ring that defrauded victims of over $46 million using fake profiles.
Crypto companies are advised to remain vigilant and implement robust security measures to protect themselves from deepfake attacks. With the threat of deepfake fraud on the rise, it is crucial for businesses to stay informed and proactive in defending against these increasingly sophisticated scams.
