In 2024, deepfake fraud continues to pose a significant threat to crypto companies, with more than half reporting incidents in a recent survey conducted by forensic services firm Regula. The survey, which included 575 businesses across various industries, revealed that 57% of crypto companies fell victim to audio fraud, while 53% reported being targeted by fake video scams.
Interestingly, the impact of deepfake frauds has seen a considerable increase since 2022, with audio deepfakes rising from 37% to 49% and video deepfakes jumping from 29% to 49%. Crypto businesses are tied with law enforcement as the most affected by audio deepfake fraud and rank third in terms of occurrences of video deepfakes.
Moreover, 53% of crypto companies reported experiencing synthetic identity fraud, where bad actors use deepfake methods to impersonate someone else. This percentage is slightly higher than the average across all sectors, indicating the severity of the issue within the crypto industry.
On average, businesses across the seven sectors surveyed reported a loss of $450,000 to deepfake frauds. Crypto companies reported an average loss of $440,116, placing them third in terms of losses behind financial services and telecommunications companies.
The survey also highlighted that over 50% of businesses in all sectors view deepfake fraud as a moderate to significant threat. In the crypto sector specifically, 69% of companies consider deepfake video scams a threat worth addressing, reflecting the growing concerns surrounding this type of fraud.
Recent incidents, such as a user losing $2 million in crypto to a deepfake scam and a deepfake scam ring in Hong Kong defrauding victims of $46 million, serve as stark reminders of the dangers posed by deepfake technology.
As the crypto industry continues to grapple with the rise of deepfake fraud, companies are urged to remain vigilant and implement robust security measures to protect themselves and their users from falling victim to increasingly sophisticated scams.