Crypto firms among top targets of audio and video deepfake attacks

Crypto companies are among the most affected by audio and video deepfake frauds in 2024, with more than half reporting incidents in a recent survey.

According to the survey conducted by forensic services firm Regula, 57% of crypto companies reported being victims of audio fraud, while 53% of the respondents fell for fake video scams.

Those percentages surpass the average impact proportion of 49% for both types of fraud across different sectors. The survey was conducted with 575 businesses in seven industries: financial services, crypto, technology, telecommunications, aviation, healthcare, and law enforcement. 

Notably, video and audio deepfake frauds registered the most significant growth in incidents since 2022. Audio deepfakes jumped from 37% to 49%, while video deepfakes leaped from 29% to 49%.

Crypto businesses are tied with law enforcement as the most affected by audio deepfake fraud and are the industry sector with the third-highest occurrences of video deepfakes. 

Moreover, 53% of crypto companies reported being victims of synthetic identity fraud when bad actors use various deepfake methods to pose as someone else. This percentage is above the average of 47% and ties with the financial services, tech, and aviation sectors.

Meanwhile, the average value lost to deepfake frauds across the seven sectors is $450,000. Crypto companies are slightly below the general average, reporting an average loss of $440,116 this year. 

Nevertheless, crypto firms still have the third-largest average losses, with just financial services and telecommunications companies surpassing them.

Recognized threat

The survey highlighted that over 50% of businesses in all sectors see deepfake fraud as a moderate to significant threat.

The crypto sector is more dedicated to tackling deepfake video scams. 69% of companies see this as a threat worth paying attention to, compared to the average of 59% from all sectors.

This could be related to the growing occurrences of video deepfake scams this year. In June, an OKX user claimed to lose $2 million in crypto after falling victim to a deepfake scam powered by generative artificial intelligence (AI).

Furthermore, in August, blockchain security firm Elliptic warned crypto investors about growing US elections-related deepfake videos created with AI. 

In October, Hong Kong authorities dismantled a deepfake scam ring that used fake profiles to take over $46 million from victims.

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