The Rise of Deepfake Crypto Scams - They're Getting Better

The Rise of Deepfake Crypto Scams - They're Getting Better

News by Vianca Meyer
Published: January 04, 2024

The world of cryptocurrency is facing a new and disturbing trend: the rise of deepfake technology in scams.

Recent incidents have underscored the increasing sophistication of these fraudulent schemes.

For instance, a convincing deepfake video of Solana co-founder Anatoly Yakovenko has been spotted on platforms like YouTube and X (formerly Twitter), where Yakovenko appears to offer a giveaway, despite the video being fake.

This incident is not isolated.

Similar deepfakes impersonating high-profile figures like Ripple CEO Brad Garlinghouse and former MicroStrategy CEO Michael Saylor have also emerged, duping unsuspecting victims into crypto scams.

The Alarming Impact of AI-Enhanced Frauds

These deepfakes, leveraging AI to replicate the voices and mannerisms of trusted figures, present a new level of danger in crypto scams.

They often promote fraudulent giveaways, asking viewers to send cryptocurrencies with promises of high returns.

A notable report involved a fake Elon Musk stream leading to a scam that amassed $165,000 in cryptocurrencies.

The realism of these deepfakes is alarming, as they can deceive even the tech-savvy, and point to a broader issue of AI misuse in social media platforms.

Screenshot by BitOK (bitok.org)

Tech Giants Under Fire for Lax Response

The persistence of such scams has brought major tech companies like Google and YouTube under scrutiny.

Their slow response in removing such content, despite community reports and legal pressure from affected companies, has raised serious concerns.

Ripple's legal battle with YouTube over the platform's failure to control scams is a stark reminder of this ongoing challenge.

Austin Federa, head of strategy at the Solana Foundation, emphasizes the urgency of this issue.

"There has been a substantial increase in deepfakes and other AI-generated content recently," he states, highlighting the need for prompt action by platforms like YouTube and X.

The proliferation of deepfake technology in crypto scams signifies a pivotal moment for both the tech industry and regulatory bodies.

It's not just about the moderation problem anymore; it's about the real-world consequences these scams can have, especially as the possibility of a Bitcoin ETF looms on the horizon.

The challenge is twofold: not only do these platforms need to enhance their content moderation policies, but users must also be vigilant.

As Garlinghouse aptly warned, "Are you asleep at the wheel again?!"

It's a wake-up call for everyone in the digital space to be more cautious and critical of the content they encounter.

Subscribe to Spotlight Newsletter
Subscribe to our newsletter to get the latest industry news