Bitget Research has projected that losses from deep fake scams in the crypto sector will exceed $25 billion in 2024, more than doubling from previous years. This alarming trend reflects a significant increase in deep fake incidents, up 245% globally compared to 2023, according to Bitget's latest report released on June 27.

The report highlights that countries like China, Germany, Ukraine, the United States, Vietnam, and the United Kingdom have reported the highest incidences of deep fakes in the first quarter of 2024. In the crypto industry alone, losses due to deep fakes surged to $6.3 billion in Q1, with projections indicating potential quarterly losses reaching $10 billion by 2025.

Gracy Chen, CEO of Bitget, emphasized the pervasive nature of deep fakes infiltrating the crypto sector, underscoring the need for heightened awareness and education to combat this threat effectively.

Deep fakes typically manifest in forms such as fake projects, phishing scams, and Ponzi schemes, leveraging sophisticated technology to deceive cryptocurrency investors. By impersonating influential figures or fabricating project legitimacy, fraudsters exploit trust to secure substantial investments without undergoing proper due diligence.

Michael Saylor, executive chairman of MicroStrategy, has frequently been targeted by deep fake fraudsters, who generate AI-generated videos to promote Bitcoin-related scams. Such tactics illustrate how deep fakes are increasingly used for market manipulation and identity fraud, aside from crypto-specific scams.

Looking ahead, Bitget Research predicts that without robust preventive measures, deep fakes could comprise up to 70% of all crypto-related crimes by 2026. Ryan Lee, chief analyst at Bitget Research, warns about the use of AI-backed voice impersonators and their potential to deceive users into fraudulent transactions, circumventing KYC measures.

To mitigate risks, exchanges are advised to enhance KYC protocols with advanced AI solutions that verify users through real-time interactions, ensuring they are not victims of deep fake fraud. As the crypto industry evolves, vigilance and technological defenses will be crucial in safeguarding against the rising threat of deep fakes.