Rising Threat Of Deepfakes In Cryptocurrency: Insights From Bitget CEO, Gracy Chen
Rising Threat of Deepfakes in Cryptocurrency: Insights From BitGet CEO, Gracy Chen
Since the launch of AI, many new scams, known as deepfakes, have emerged that weren’t possible before. Gracy Chen, CEO of Bitget, a prominent exchange in the cryptocurrency industry, recently spoke about an alarming rise of deepfake-related crimes and the profound implications they hold for the security of digital assets.
Understanding Deepfake Crimes in the Crypto Space
Deepfakes, a technology that leverages artificial intelligence to create hyper-realistic but fake videos and images, have found their way into the cryptocurrency market. Gracy Chen explains that deepfake crimes in this space can take two primary forms: hacking into existing accounts and creating fraudulent new accounts.
In a research interview discussion, Chen highlighted that “someone can use a passport copy to create a KYC account at an exchange and then use deepfake technology to fake the person’s face,” she explained. The potential for misuse is high, particularly in an industry where security is paramount.
Chen pointed out that deepfakes can even bypass sophisticated security systems, such as Apple’s facial recognition technology. “If you deepfake someone, you can shake your hands, but it’s not really them shaking hands,” she noted, shedding light on the new reality of digital technology capabilities.
Mitigating the Threat: Security Measures and User Vigilance
The cryptocurrency industry has long been associated with risks, but the introduction of deepfake technology adds a new layer of complexity. To combat these threats, Chen emphasized the importance of robust security measures.
Bitget, the exchange where she serves as CEO, has implemented multiple layers of security checks, including the use of third-party providers like SumSub to detect AI-generated content.
“Users have multiple layers of security check… we can do like four levels of check,” Chen stated, outlining the proactive steps being taken to safeguard user accounts. These measures are paramount in an industry where exchanges often hold significant amounts of users’ crypto assets, making them prime targets for cybercriminals.
Beyond technical solutions, Chen also urged users to take personal responsibility for their security. She advised opting for well-established exchanges and being cautious about sharing personal information online. “We would suggest users choose credible, big exchanges… and be protective,” she recommended.
The Broader Implications for the Cryptocurrency Industry
Chen warned of the broader implications for the entire cryptocurrency ecosystem being subject to threat against bad actors. If deepfake-related incidents become widespread, they could erode trust in digital financial systems. “If there are so many different users’ accounts affected like this… it’s kind of impacting Bitcoin or the whole crypto industry,” she explained.
Chen also touched on the dual-edged nature of AI technology. While AI has the potential to enhance security, it simultaneously introduces new vulnerabilities. “AI is a trend, AI is this powerful tool that is making our life easier and harder,” she remarked, reflecting on the paradox that the industry faces.
The Future of Security in Cryptocurrency: “Bitget have our proof of reserve published on a monthly basis… and a protection fund… to compensate our users,”
As the cryptocurrency market matures, the security landscape must continuously adapt to emerging threats. Chen acknowledged that while the industry has made significant strides in combating traditional scams and hacks, deepfakes represent a new frontier of challenges. “We should already feel a little bit safer… but now with the introduction of AI… we have a deepfake-related crime problem,” she said.
Collaboration with third-party security providers to increase the need for industry-wide transparency. Bitget, for instance, publishes its proof of reserve and maintains a protection fund to compensate users in case of a breach. “We have our proof reserve published on a monthly basis… and a protection fund… to compensate our users,” she detailed.
Chen’s advice to users is clear. Stay informed, be vigilant, and choose your partners in the crypto space wisely.
For those new to the industry, Chen recommended starting with educational resources like CoinGecko and CoinMarketCap, which list exchanges and provide valuable insights into their credibility. “Start educating yourself before you get into the market,” she advised.
