The world of cryptocurrency is under siege by the threat of deepfakes, as advanced artificial intelligence (AI) technology creates fake identities at an alarming rate.
To combat this growing danger, exchanges like Bitget are teaming up with Sumsub, a top provider of Know Your Customer (KYC) verification services, to enhance security measures and safeguard users.
Bitget announced that the partnership aims to protect its 25 million users worldwide by detecting and preventing deepfake scams with an accuracy rate of over 99%. Sumsub will supply Bitget with identity verification, facial biometrics, non-document verification, and database validation.
With deepfakes 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 services will play a crucial role in ensuring both companies maintain high security standards.
The fear of deepfakes is well-founded, as these sophisticated identity frauds can bypass even the most robust security measures, leaving unsuspecting users at risk of financial devastation. The repercussions can include identity theft, drained accounts, and a loss of confidence in the cryptocurrency ecosystem.
As the digital landscape evolves, AI-generated deepfakes present significant challenges to the KYC framework, impacting various sectors, including crypto. Recently, OnlyFake gained attention for allegedly circumventing KYC protocols on popular cryptocurrency trading platforms.
Gracy Chen, CEO of Bitget, emphasized the importance of combating deepfakes in the crypto ecosystem in light of recent incidents within the industry. A fraudulent crypto exchange platform in May used AI-generated videos of Elon Musk and misleading information to promote its services, prompting action from Hong Kong authorities.
The widespread availability of AI deepfake technology has raised concerns among cryptocurrency leaders, particularly regarding the reliability of video verification processes for specific identity validations.
However, the threat of deepfakes extends beyond the crypto realm, with AI technology likely to infiltrate other industries like finance, healthcare, and government. Regulatory responses to incidents like AI-generated robocalls imitating President Joe Biden underscore the need to address this issue across various sectors.
Cointelegraph attempted to contact Bitget for further details on its collaboration with Sumsub but did not receive a response at the time of publication.
In the battle against AI fakes, the latest issue of Real AI & crypto use cases explores how blockchain technology can help combat deepfakes effectively.