- Deepfake-related crypto frauds have resulted in over $79.1 billion in losses since 2022.
- A 245% increase in deepfake fraud cases was reported globally in 2024.
- Social engineering and bot fraud accounted for $2.03 billion in Q1 2024 losses.
Deepfake-related fraud in the cryptocurrency sector has skyrocketed, with Bitget’s latest report revealing a 245% increase in cases in 2024. The surge in AI-driven deepfakes has led to financial losses exceeding $79.1 billion since 2022, posing a significant threat to the industry.
Social engineering and bot fraud have emerged as prominent methods in deepfake-related crimes, contributing to $2.03 billion in losses during Q1 2024 alone. Despite ongoing international efforts, Bitget warns that quarterly losses could reach $10 billion by 2025.
Crypto Sector Faces Rising Threat from Deepfake Frauds: Bitget Report
The cryptocurrency sector is facing an unprecedented rise in deepfake-related fraud, with Bitget reporting a 245% increase in 2024. The total financial impact since 2022 has reached over $79.1 billion, marking a significant challenge for the industry. As deepfakes become more sophisticated, the need for robust security measures and user education is more critical than ever.
Social engineering and bot fraud are key components of this growing threat. In Q1 2024 alone, these methods accounted for $2.03 billion in losses. Bitget’s report highlights the scale of the issue and the urgent need for better regulatory frameworks to protect users and the broader financial ecosystem.
Projections indicate that without significant regulatory intervention, the situation will worsen. Bitget forecasts a 70% increase in deepfake-related crypto crimes by early 2026. The potential for quarterly losses to hit $10 billion by 2025 underscores the magnitude of the threat and the necessity for global cooperation in addressing it.
Gracy Chen, Bitget’s chief executive, emphasizes the importance of vigilance and awareness among users. Until a comprehensive global legal and cybersecurity framework is in place, the responsibility largely falls on individuals to protect themselves from these sophisticated frauds. The report serves as a stark reminder of the evolving risks in the digital age.
The rising tide of deepfake-related fraud in the cryptocurrency sector demands immediate attention. Strengthening regulatory frameworks and enhancing user education are essential steps to mitigate these threats and safeguard the future of digital finance.
“There is little we can do to stop them without proper education and awareness.”
– Gracy Chen, Bitget Chief Executive
