Revealed: Ways in which AI deepfakes fuel Crypto Scams and how to protect yourself
TLDR;
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Deepfakes allow scammers to create realistic images and voices of popular figures
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Crypto scammers using AI technology mostly target older people
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Scammers use AI to filter social media data to narrow down on worthy targets
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To protect yourself, don't be in a hurry to get rich overnight
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Deepfakes are images, audio, or video created using AI that closely resemble real objects, people, and places. Sometimes, the deepfake is so convincing that you can�t quickly differentiate it from the real image or voice. Most of the deepfakes impersonate popular figures like Elon Musk, former United States president Joe Biden, investor Warren Buffett, former Binance exchange CEO Changpeng Zhao, and crypto personalities like Ethereum co-founder Vitalik Buterin.
How AI deepfakes fuel crypto scams
AI Data mining and analysis
This is where it all starts. Before malicious actors use AI to create deepfakes of prominent figures, they first survey their targets. One way they do this is by accumulating loads of data from various sites including social media platforms.
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Scammers use AI to analyze their target�s online behavior. This helps in crafting personalized and targeted videos and voices that seem to be directly speaking to you, the victim. They also use AI to analyze the data to find the most susceptible targets.
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Apart from creating personalized content for their victims, AI data analysis helps scammers understand their targets� risk tolerance and the type of scams they can easily fall for.
AI chatbots
The next step after analyzing data is engaging with potential victims. Scammers dive deeper into the AI world and curate AI chatbots that engage with the targets. The bots can do a wide range of activities such as offering investment advice, promoting fake tokens, and answering questions. The conversations resemble those of a real person.
Realistic public figure impersonation campaigns
Apart from AI data analysis and chatbots, AI deepfakes fuel crypto scams by successfully impersonating public figures. According to a post by Google, �the rise of accessible deepfake technology has enabled scammers to create sometimes-convincing public figure impersonation campaigns.�
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The aim of the AI deepfakes is to earn the victims� confidence through fake credibility. The AI deepfakes promote malicious mobile/desktop apps, giveaways, and high-return investments. Google noted a rise in crypto investment schemes, website landing page cloning/cloaking using artificial intelligence to lure victims.
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To clarify, cloning is creating a duplicate page that resembles the original web page but with a different URL. Each time users try to access the actual page, the scammers send them to the cloned version.
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Cloaking, on the other hand, is the act of masking content on Google and other search engines. In essence, what Google sees is different from what the victims see.
AI deepfakes in major events
AI deepfakes fuel crypto scams by exploiting major events like elections, disasters, and sporting events. In these scenarios, scammers use AI deepfakes to spread malicious information, release fake breaking news, and use some of the events to fraudulently solicit funds from the public.
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For example, they can use the recent Los Angeles fire disaster to solicit crypto donations from the public. They may appeal using images, videos, and voices of prominent people and celebrities generated using AI.
Who are the most susceptible scam victims?
According to a 2023 FBI report, victims between 30-49 years and over 60 years reported the most complaints about being scammed and also lost the most amounts with those over 60 years losing over $1.5 billion.
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With scammers turning to AI deepfakes to fuel their activities, the number of victims will spread to the younger generation. The FBI disclosed that AI deepfakes fuel crypto scams mostly in the areas of investment, tech support, personal data breaches, and extortion.�
It�s only the start
The use of AI deepfakes to fuel crypto scams is only getting started. According to blockchain security firm Chainalysis, AI deepfakes fuel crypto scams by allowing malicious actors to create fake personas.
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Chainalysis said that AI will help scammers steal more funds in 2025 and beyond. It added that �GenAI is amplifying scams, the leading threat to financial institutions, by enabling high-fidelity, low-cost, and highly scalable fraud that exploits human vulnerabilities.�
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The blockchain analysis firm disclosed that scammers are creating AI deepfakes to help them bypass identity verification systems.
How to protect yourself from AI-fueled crypto scams
Don�t be in a hurry to get rich - This is among the top reasons why most people lose their funds to scammers. Greed plays a huge role in you being scammed.
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Boost your crypto wallet�s security - Put extra layers of security like whitelisting addresses you frequently interact with to be notified each time you�re about to send crypto to an un-whitelisted address.
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Be updated on the latest types of crypto scams - Follow the news to know the latest tricks scammers are using to defraud unsuspecting users.
Conclusion
AI deepfakes fuel crypto scams through identity theft, generative AI calls, deep-voice fraud, and cyberbullying. To protect yourself, be cautious of get-rich-quick schemes, be updated on the latest scamming tricks, and update your wallet�s security. Also, use trusted wallets and crypto services from trusted platforms and know that prominent figures and celebrities aren't as generous as the scammers want you to think.
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Always do your own research. DYOR.