The realm of cryptocurrency is facing an increasing danger from deepfakes, as advanced artificial intelligence (AI) technology is generating fake identities at an alarming rate.
To address this issue, exchanges like Bitget are teaming up with Sumsub, a top-notch Know Your Customer (KYC) verification provider, in order to bolster security and safeguard users.
Bitget announced that this collaboration is aimed at protecting its 25 million users worldwide by identifying and preventing deepfake scams with an accuracy rate of over 99%. Sumsub will offer Bitget services such as identity verification, facial biometrics, non-doc verification, and database validation.
With a recent surge of 217% in deepfakes detected within the crypto sector from the first quarter of 2023 to the first quarter of 2024, and a remarkable 245% increase across all industries, the AI-powered deepfake detection and fraud prevention capabilities of Sumsub will play a crucial role in ensuring that both companies uphold high security standards.
The concern surrounding deepfakes is well-founded and with good reason. These sophisticated forms of identity fraud can easily circumvent even the most robust security measures, leaving unsuspecting users susceptible to financial devastation. The repercussions include identity theft, drained accounts, and a loss of confidence in the crypto community.
As the digital landscape continues to evolve, AI-generated deepfakes present significant challenges to the KYC framework, affecting a variety of sectors, including cryptocurrency. Recently, a platform known as OnlyFake garnered attention for allegedly skirting the KYC protocols of several prominent cryptocurrency trading platforms.
Bitget’s CEO, Gracy Chen, emphasized the importance of combating deepfakes within the crypto ecosystem in light of recent incidents in the industry.
In a separate occurrence, a fraudulent crypto exchange utilized AI-generated videos featuring Elon Musk and misleading information to promote crypto trading services. Authorities in Hong Kong took action against the exchange after discovering AI-generated videos and images of Musk on its website and social media channels.
Moreover, the widespread availability of AI deep fake technology has raised concerns among leaders in the cryptocurrency sector, particularly in verifying the authenticity of video verification processes employed for specific identity checks.
However, the threat posed by deepfakes extends far beyond the realm of cryptocurrency. As AI technology continues to advance, deepfakes are expected to infiltrate other industries such as finance, healthcare, and government.
In a recent incident, residents of New Hampshire reported receiving robocalls featuring the voice of U.S. President Joe Biden advising them not to vote in the state primary election. This prompted U.S. regulators to outlaw the use of AI-generated voices in automated phone scams, deeming them illegal under telemarketing laws.
Cointelegraph reached out to Bitget for further details on its partnership with Sumsub, but had not received a response at the time of publication.
Magazine: Real AI & crypto use cases, No. 4: Combatting AI fakes with blockchain.