The world of cryptocurrency is under threat from the rapid proliferation of deepfakes, which are AI-generated fake identities becoming increasingly sophisticated.
In response to this growing concern, exchanges like Bitget are teaming up with Sumsub, a top Know Your Customer (KYC) verification provider, to bolster security measures and safeguard users.
Bitget announced that this collaboration is geared towards protecting its 25 million users globally by detecting and preventing deepfake scams with an accuracy rate exceeding 99%. Sumsub will offer Bitget services like identity verification, facial biometrics, non-doc verification, and database validation.
With deepfakes in the crypto sector surging by 217% from the first quarter of 2023 to the first quarter of 2024, and a staggering 245% increase across all industries, Sumsub’s AI-driven deepfake detection and fraud prevention tools will play a crucial role in ensuring both companies maintain high security standards.
The threat posed by deepfakes is a legitimate concern, as these sophisticated identity frauds can breach even the most robust security protocols, leaving unsuspecting individuals susceptible to financial losses. The repercussions include stolen identities, drained accounts, and a breakdown of trust within the crypto ecosystem.
As the digital landscape evolves, AI-generated deepfakes present significant challenges to the KYC framework, affecting various sectors, including crypto. Recently, OnlyFake made headlines for allegedly circumventing KYC procedures on multiple prominent cryptocurrency trading platforms.
Bitget’s CEO, Gracy Chen, emphasized the importance of combating deepfakes in the crypto ecosystem, citing recent incidents within the industry as evidence of the pressing need for action.
In a highly publicized case in May, a fraudulent crypto exchange utilized AI-generated videos featuring Elon Musk and misleading information to promote its crypto trading services. Hong Kong authorities cracked down on the exchange for showcasing AI-generated content 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 reliability of video verification processes used for identity validation.
Despite originating in the crypto world, the threat of deepfakes extends beyond this realm. As AI technology progresses, deepfakes are poised to infiltrate other industries such as finance, healthcare, and government.
Recent incidents, like the use of an AI-generated voice resembling President Joe Biden in robocalls discouraging voting in a state primary election, have prompted regulators in the U.S. to outlaw the use of AI-generated voices in automated phone scams under telemarketing laws.
Cointelegraph reached out to Bitget for additional information on its partnership with Sumsub but had not received a response as of the publication deadline.
In the latest edition of Real AI & crypto use cases, Issue No. 4 delves into the role of blockchain in combating AI fakes.