Bitget Research Report Reveals Deepfakes May Account for 70% of Crypto Crimes in Two Years

Victoria, Seychelles, 26th June 2024 — Bitget, the world's leading cryptocurrency exchange and Web3 company, has released a detailed report outlining the impact of deepfake technologies on the cryptocurrency industry. The document reveals a sharp increase in the use of deepfakes for criminal purposes that has led to total losses of over $79.1 billion since the beginning of 2022.

This study addresses deepfake-related fraud in cryptocurrency by analyzing absolute figures of victim losses, including data in 2022, 2023 and forecasts through 2024. Using reports from Bitget's Anti-Scam Month campaign and specialist inputs, it emphasized fraudulent marketing, influencer speeches, and pseudo-educational videos. Social media mentions and data from law enforcement and fact-checking services ensured accuracy, with data systematically organized to maintain user privacy.

Bitget Research’s Deepfake report highlights the gradual sophistication of the use of malicious deepfakes in the crypto sector which has spiked by 245% globally in 2024, as compared to last year. Despite various governmental efforts, quarterly losses from the use of deepfakes can lead to around $10 billion by 2025. With 2024 ending on a likely figure of $25.13 billion attributed to such crimes.

“Deepfakes are moving into the crypto sector in force and there is little we can do to stop them without proper education and awareness. The vigilance of the users and their ability to discern scams and fraud from real offerings is still the most effective line of defence against such crimes, until a comprehensive legal and cybersecurity framework is in place on a global scale,” says Gracy Chen, the CEO at Bitget, commenting on the figures outlined in the report. “That is why Bitget launches the Anti-Scam Month campaign in June. By partnering with Slowmist and other collaborators, we will release a series of educational articles and posters, host Twitter Spaces with security tips, and place outdoor safety warning billboards to help more users navigate crypto safely.”

In-depth analysis of techniques employed by the criminals indicates that their preferred methods are social engineering and bots. The fraudsters also actively employ new developments in AI, including behavioral pattern recognition technologies, voice replacement, as well as machine learning, and face replacement algorithms. Such advancements allow criminals to leverage identity theft and impersonation for fraudulent purposes and to enact scam schemes in crypto.

Since early 2022, Cryptocurrency fraud losses have hit $79.1 billion since early 2022. Social engineering and bot fraud accounted for 14.21% of deepfake crimes in Q1 2024, with losses accounting to $2.03 billion. Without effective measures in place, the exponential rise in crypto deepfake crimes may surge by 70% by early 2026 further states the report.

Analysis of the data in the report indicates that by early 2026, deepfake-related crimes in the crypto sector could surge by 70%. The primary drivers for increase in malicious deepfake activities are market volatility, advancements in deepfake technology and social engineering tactics, and increased investor risk-taking fueled by unverified information.

The report indicates that among the most common types of deepfakes in crypto space are identity theft, deepfake-generated fake IDs for bot networks, market manipulation schemes, investment fraud, and others. The largest subset of fake news crimes in terms of losses encompasses scams, illegal fundraising, sham arbitration, social engineering attacks, disinformation, and fake announcements.

Adapting regulatory frameworks and enhancing the technological capabilities of industry players are important for curbing the rise of deepfake use in the crypto space. Cooperation between market participants and governments globally is crucial to avoid a shift in regional dominance of such crimes.

Bitget helps its users by spreading awareness around deepfakes and other phishing attacks that may harm users. With collaboration such as SumSub’s , Bitget aims to secure its 25 million users worldwide by identifying and preventing deepfake scams with an over 99% accuracy rate with identity verification, facial biometrics, non-doc verification and database validation.

About Bitget

Established in 2018, Bitget is the world's leading cryptocurrency exchange and Web3 company. Serving over 25 million users in 100+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, swap, NFT Marketplace, DApp browser, and more. Bitget inspires individuals to embrace crypto through collaborations with credible partners, including legendary Argentinian footballer Lionel Messi and Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team). For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord | Bitget Wallet For media inquiries, please contact: media@bitget.com