Amid increasing worries about online security, Coinbase has issued a warning about the growing number of deepfake scams targeting the cryptocurrency sector.

These alerts come in the wake of rising incidents of fake AI-generated images and videos spreading false news on social media, especially following the recent conviction of former U.S. President Donald Trump.

Trump Deepfakes Proliferate Post-Verdict

After the verdict where Donald Trump was found guilty of falsifying business records, his supporters unleashed a flood of AI-generated images depicting Trump as a victim of a conspiracy. Notable figures on X (formerly Twitter) shared these deepfakes soon after the New York jury's decision. This tactic is increasingly common, using deepfakes to sway public perception and spread misinformation.

Coinbase’s Chief Information Security Officer, Jeff Lunglhofer, highlighted the rising complexity and frequency of these deepfakes. He pointed out that platforms like YouTube are particularly vulnerable because the content often doesn't breach conduct rules or trigger security alerts, unlike more easily identifiable violations like nudity or terrorism.

Deepfake Scams Targeting Crypto Executives

Speaking at the Consensus conference, Lunglhofer voiced his concerns over the impact of advanced AI technology on the crypto industry. He cited instances where deepfake videos of crypto executives, like Coinbase's Brian Armstrong and Ripple's Brad Garlinghouse, were used to promote fake token giveaways. These deepfakes appear highly realistic, making it difficult to distinguish them from legitimate content.

As deepfake technology becomes more advanced, the threat of convincing scams grows. Lunglhofer stressed that vigilance alone isn't enough to counter these dangers and advocated for additional security measures to protect assets and transactions.

Enhancing Security in Cryptocurrency

Given the high risks involved in cryptocurrency transactions, Lunglhofer recommends implementing stronger security protocols. He suggests using features like vaults and multi-signature (multi-sig) protocols, which introduce a waiting period before large transactions can be completed. This added layer of protection can help mitigate impulsive actions that lead to significant financial losses.

For smaller, everyday transactions, Lunglhofer endorses the use of passkeys. These generate a unique security token for each device, offering greater security than SMS-based authentication, which he criticizes as easily hackable and inadequate for secure authentication.

In conclusion, as deepfake technology continues to evolve, the cryptocurrency industry must adopt more robust security measures to safeguard against increasingly sophisticated scams. Lunglhofer’s recommendations aim to bolster defenses and ensure the safety of digital assets in this rapidly changing landscape.