The world of cryptocurrency is facing a growing threat from deepfakes, as sophisticated artificial intelligence (AI) technology creates fake identities at an alarming rate.
To combat this issue, exchanges like Bitget are teaming up with Sumsub, a top Know Your Customer (KYC) verification provider, to bolster security and protect users.
Bitget announced that the partnership aims to safeguard its 25 million users worldwide by detecting 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 significant 217% surge in deepfakes identified in the cryptocurrency sector from the first quarter of 2023 to the first quarter of 2024, and a remarkable 245% spike across all industries, Sumsub’s AI-powered deepfake detection and fraud prevention measures will play a crucial role in ensuring both companies maintain high security standards.
The concern over deepfakes is legitimate and serious. These advanced identity frauds can outsmart even the most robust security measures, putting unsuspecting users at risk of financial devastation. The repercussions 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. OnlyFake recently made headlines for allegedly circumventing the KYC protocols of major cryptocurrency trading platforms.
Bitget’s CEO, Gracy Chen, emphasized the importance of combating deepfakes in the crypto ecosystem in light of recent incidents within the industry.
In a separate event, a fraudulent crypto exchange platform utilized AI-generated videos of Elon Musk and false information to promote crypto trading services. Authorities in Hong Kong shut down the exchange after discovering 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 regarding the trustworthiness of video verification processes used in specific identity verifications.
The threat of deepfakes extends beyond the crypto realm, as AI technology advances, posing risks to industries such as finance, healthcare, and government. In a recent case, residents in New Hampshire received robocalls featuring the voice of U.S. President Joe Biden instructing them not to vote in the state primary election.
In response to this incident, U.S. regulators banned the use of AI-generated voices in automated phone scams, making them illegal under telemarketing laws.
Cointelegraph attempted to reach out to Bitget for more details on its collaboration with Sumsub but did not receive a response at the time of publication.
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