The world of cryptocurrency is facing a growing threat from deepfakes, as highly advanced artificial intelligence (AI) generated fake identities are proliferating rapidly.
In response to this challenge, platforms like Bitget are teaming up with Sumsub, a top provider of Know Your Customer (KYC) verification services, to bolster security measures and safeguard users.
Bitget announced that the collaboration aims to protect its 25 million global users by detecting and preventing deepfake scams with an accuracy rate of over 99%. Sumsub will supply Bitget with identity verification, facial biometrics, non-doc verification, and database validation.
With a recent surge of 217% in deepfakes detected within the cryptocurrency sector from the first quarter of 2023 to the first quarter of 2024, and an astonishing 245% increase across all industries, Sumsub’s AI-powered deepfake detection and fraud prevention tools will play a crucial role in ensuring that both companies adhere to rigorous security standards.
Deepfakes are a legitimate concern for a good reason. These sophisticated identity frauds can 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 cryptocurrency ecosystem.
As the digital landscape continues to evolve, AI-generated deepfakes present significant obstacles to the KYC framework, impacting various sectors, including cryptocurrency. Recently, the platform OnlyFake made headlines for allegedly circumventing the KYC protocols of several prominent cryptocurrency exchanges.
Bitget’s CEO, Gracy Chen, emphasized the urgency of combatting deepfakes in the cryptocurrency ecosystem in response to recent events within the industry.
In a separate incident, a fraudulent cryptocurrency exchange utilized AI-generated videos of Elon Musk and misleading information to promote its trading services. Authorities in Hong Kong took action against the exchange for featuring AI-generated videos and images of Musk on its website and social media platforms.
The widespread availability of AI deepfake technology has raised concerns among cryptocurrency industry leaders, particularly regarding the reliability of video verification processes used in specific identity validations.
Despite the primary threat being in the cryptocurrency realm, the danger of deepfakes extends beyond this sector. As AI technology progresses, deepfakes are likely to infiltrate other industries, such as finance, healthcare, and government.
An incident in New Hampshire saw citizens receiving robocalls using the voice of President Joe Biden instructing them not to vote in the state primary election. This prompted U.S. regulators to prohibit the use of AI-generated voices in automated phone scams, deeming them illegal under telemarketing laws.
Cointelegraph attempted to reach out to Bitget for further details on its partnership with Sumsub, but no response was received at the time of publication.
In the ongoing battle against AI fakes, blockchain technology is proving to be a valuable tool, as illustrated in Real AI & crypto use cases, Issue No. 4: Fighting AI fakes with blockchain.