In the second quarter of 2024, crypto scammers have increasingly used AI-powered deepfake videos, according to Gen Digital, the parent company of antivirus firms Norton, Avast, and Avira.
Cybercriminals Expanding Their Toolkits
Gen Digital’s quarterly report highlighted that they followed a group called “CryptoCore,” which used AI-powered deepfake scams to defraud crypto holders. The group touts fake crypto investments and exploits official videos of prominent individuals like Elon Musk, Michael Saylor, Vitalik Buterin and Larry Fink. It replaces the audio with AI-generated voices or mixes unofficial material with official footage to conduct their scams. Gen Digital said that the criminal organization spreads its videos on social media platforms like YouTube, X, and TikTok. The scammers also use hacked social media accounts with large followings before displaying livestreams promoting their scams.
Most Exploited Topics
In August, antivirus software company Avast also conducted a deep dive into CryptoCore and learned that the most exploited topics using AI-powered deepfakes to conduct scams included SpaceX, MicroStrategy, Ripple, Tesla, BlackRock, and Cardano. The firm noted that the scammers can now perform high-quality lip-syncing, which can mislead viewers into thinking that they are watching official promotions from prominent individuals.
Conclusions and Recommendations
Gen Digital reported that the AI deepfake group they called CryptoCore has already gained millions from their attacks. In the last quarter, $5 million in crypto was lost to this attack vector. During SpaceX’s integrated flight test in June, Gen Digital estimated that 50 YouTube accounts were hijacked. This cyberattack resulted in 500 unauthorized transactions, leading to the theft of $1.4 million.
The use of AI-powered deepfake videos in crypto scams continues to grow, becoming increasingly sophisticated. Consumers are advised to stay vigilant and cautious when engaging with online content to avoid falling victim to scammers.
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