Crypto firms among top targets of audio and video deepfake attacks

  cryptoslate.com 01 November 2024 07:37, UTC

Crypto companies are among the most affected by audio and video deepfake frauds in 2024, with more than half reporting incidents in a recent survey.

According to the survey conducted by forensic services firm Regula, 57% of crypto companies reported being victims of audio fraud, while 53% of the respondents fell for fake video scams.

Those percentages surpass the average impact proportion of 49% for both types of fraud across different sectors. The survey was conducted with 575 businesses in seven industries: financial services, crypto, technology, telecommunications, aviation, healthcare, and law enforcement.

Notably, video and audio deepfake frauds registered the most significant growth in incidents since 2022. Audio deepfakes jumped from 37% to 49%, while video deepfakes leaped from 29% to 49%.

Crypto businesses are tied with law enforcement as the most affected by audio deepfake fraud and are the industry sector with the third-highest occurrences of video deepfakes.

Moreover, 53% of crypto companies reported being victims of synthetic identity fraud when bad actors use various deepfake methods to pose as someone else. This percentage is above the average of 47% and ties with the financial services, tech, and aviation sectors.

Meanwhile, the average value lost to deepfake frauds across the seven sectors is $450,000. Crypto companies are slightly below the general average, reporting an average loss of $440,116 this year.

Nevertheless, crypto firms still have the third-largest average losses, with just financial services and telecommunications companies surpassing them.

Recognized threat

The survey highlighted that over 50% of businesses in all sectors see deepfake fraud as a moderate to significant threat.

The crypto sector is more dedicated to tackling deepfake video scams. 69% of companies see this as a threat worth paying attention to, compared to the average of 59% from all sectors.

This could be related to the growing occurrences of video deepfake scams this year. In June, an OKX user claimed to lose $2 million in crypto after falling victim to a deepfake scam powered by generative artificial intelligence (AI).

Furthermore, in August, blockchain security firm Elliptic warned crypto investors about growing US elections-related deepfake videos created with AI.

In October, Hong Kong authorities dismantled a deepfake scam ring that used fake profiles to take over $46 million from victims.

Source