The realm of cryptocurrency is under siege by a growing menace known as deepfakes, as advanced artificial intelligence (AI) technology churns out counterfeit identities at an alarming pace.
To counter this threat, platforms like Bitget are teaming up with Sumsub, a top-notch Know Your Customer (KYC) verification provider, in a bid to bolster security and safeguard users.
Bitget revealed that this collaboration is geared towards protecting its 25 million users worldwide from deepfake scams with an accuracy rate exceeding 99%. Sumsub will equip Bitget with identity verification, facial biometrics, non-doc verification, and database validation.
With a staggering 217% surge in deepfakes detected in the cryptocurrency sector from the first quarter of 2023 to the first quarter of 2024, and a jaw-dropping 245% increase across all industries, Sumsub’s AI-driven deepfake detection and fraud prevention mechanisms are paramount in ensuring both entities meet stringent security protocols.
The apprehension surrounding deepfakes is well-founded and for good reason. These intricate identity frauds have the ability to outmaneuver even the most robust security systems, leaving unsuspecting individuals at risk of financial devastation. The fallout may include identity theft, drained accounts, and a erosion of trust in the cryptocurrency ecosystem.
As the digital realm evolves, AI-generated deepfakes present formidable challenges to the KYC framework, impacting diverse sectors, including cryptocurrency. Recently, OnlyFake garnered attention for allegedly circumventing the KYC procedures of several prominent cryptocurrency exchanges.
Gracy Chen, CEO of Bitget, emphasized the pressing need to combat deepfakes within the cryptocurrency ecosystem, given recent incidents in the industry. A fraudulent crypto exchange platform in May employed AI-generated videos of Elon Musk and misleading content to promote its trading services. Authorities in Hong Kong cracked down on the exchange for showcasing AI-generated videos and images of Musk on its website and social media platforms.
Furthermore, the widespread availability of AI deepfake technology has raised concerns among leaders in the cryptocurrency sector, particularly when verifying the authenticity of video verification processes in specific identity validations.
Beyond the realm of cryptocurrency, the peril of deepfakes extends to other industries as AI technology progresses. Instances like robocalls using the voice of U.S. President Joe Biden to dissuade New Hampshire citizens from voting in the state primary election highlight the far-reaching impact of deepfakes.
This incident 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 insights on its partnership with Sumsub but had not received a response at the time of publication.
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