Deepfake-related crypto fraud has surged by 245% globally, according to Bitget’s latest report. These sophisticated scams have resulted in losses exceeding $79.1 billion since 2022. The rise in artificial intelligence (AI) has transformed the landscape, making deepfakes a significant threat.
Bitget Research found that in 2024 alone, the number of malicious deepfake cases soared compared to the previous year. Despite international efforts to combat this issue, quarterly losses from deepfake fraud could reach around $10 billion by 2025. The report projects that 2024 will likely end with $25.13 billion in such crimes.
Gracy Chen, Chief Executive of Bitget, noted that deepfakes are increasingly targeting the crypto sector. She emphasized the importance of education and awareness in combating these frauds. “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,” she said. Comprehensive legal and cybersecurity frameworks are needed globally to address this issue.
Bitget’s report also detailed that social engineering and bot fraud accounted for 14.21% of deepfake crimes in Q1 2024, resulting in $2.03 billion in losses. The report projects a 70% surge in crypto deepfake crimes by early 2026. Analysts suggest that without regulatory intervention, financial losses from deepfakes are likely to continue increasing. This will pose a significant threat to both the cryptocurrency sector and the broader financial industry.
