A disturbing trend is emerging in the crypto space, with deepfake crypto scams expected to exceed $25 billion in losses in 2024, a staggering increase from the previous year. According to a recent report by Bitget, the number of deep fakes worldwide has surged by 245%, with the crypto industry bearing the brunt of the attacks. In the first quarter of 2024 alone, losses totaled over $6.3 billion, a 217% year-over-year increase.

Deepfake fraudsters are using sophisticated tactics to coerce victims, often exploiting the likeness of influential figures and celebrities to promote fraudulent investment schemes. They falsely imply official backing, legitimizing the project among potential victims. In some cases, deepfake technology has been used to impersonate high-level executives during online meetings, authorizing large transactions and impacting both the corporate and crypto sectors.

The rise of AI crypto crimes marks a new era of cyber threats, with dark web forums exploring large language models for crypto-related crimes. These tools aim to evade detection by legitimate GPTs, facilitating phishing, malware deployment, and reverse-engineering wallet seed phrases. The report highlights the need for a review of early warning signs of illegal activity to ensure long-term innovation and mitigate emerging risks.

The crypto industry must remain vigilant and take proactive measures to prevent these scams. Investors must be cautious and do their due diligence before investing in any project. The future of crypto crime is "AI-driven," and it's essential to stay ahead of the criminals. By understanding the tactics and risks, we can work together to create a safer and more secure crypto space.