Scammers are using deepfake videos of Polygon co-founder Sandeep Nailwal to deceive crypto founders. This issue has drawn attention to security risks within the crypto industry.
Scam with Deepfake during Meetings
Sandeep Nailwal, co-founder of the Polygon platform, reported scammers using deepfake avatars of himself and other employees to deceive participants in video calls. The attackers compromised the Telegram account of Polygon Ventures leader Shreyansh Singh to connect with crypto founders and suggest setting meetings via a Calendly link. Ultimately, victims were sent Zoom links where they encountered deepfake videos of Nailwal, Singh, and another woman posing as a Polygon employee.
Victim and Expert Opinions
Several crypto founders who fell victim to the scam expressed concerns about the risks associated with deepfake impersonations. Rabble co-founder Prasad Kaavya mentioned that the images on the call looked remarkably real, and only his personal connection to Nailwal led him to suspect that the meeting might be fraudulent. He stated, "Here's the scary part: If I wasn't personally connected to these people, I might have trusted the deepfake." Other founders confirmed similar messages from scammers but quickly recognized the deception and did not join the video call.
Nailwal's Security Recommendations
In response to the incident, Nailwal advised crypto users to avoid installing any software on their devices when interactions are initiated by others. He emphasized that having a separate device for managing crypto wallets is the safest approach. "These attacks keep getting more and more sophisticated, so the best approach is to keep a separate laptop for signing via your wallets only from that laptop and never do anything else on that wallet," he noted.
The case involving scammers using deepfakes highlights the critical importance of security in the crypto industry and the need for caution when leveraging new technologies.
