New York, Monday, September 16, 2024-The cryptocurrency industry has emerged as the second most targeted sector for identity fraud in Q2 2024, according to a report by AU10TIX released on September 11.
The report reveals that nearly 29% of global identity fraud attempts targeted crypto platforms, trailing only the payments sector, which accounted for 52% of all cases.
The rise in identity fraud within the crypto sector is largely attributed to criminals exploiting the privacy features of blockchain technology. Platforms such as exchanges, decentralized services, and wallets are increasingly targeted by fraudsters using advanced tools, including impersonation bots and deepfake technology.
These tools create convincing fake accounts that deceive users and platforms, leading to substantial financial losses.
High-profile figures like Elon Musk and Tim Cook have fallen victim to such deepfake scams, which have significantly impacted the industry. In June, crypto exchange Bitget reported a 245% increase in deepfake-related scams, estimating global losses to exceed $25 billion in 2024.
The report also highlights the geographic distribution of these fraud attempts, with major impacts in the United States, China, Germany, the United Kingdom, Ukraine, and Vietnam. In response, Bitget has partnered with identity verification provider Sumsub to enhance protection against these scams.
The crypto sector faced $572 million in losses due to hacks and scams in Q2 2024, with decentralized finance (DeFi) platforms being particularly vulnerable. As crypto fraud evolves, both individuals and platforms must strengthen security measures to combat increasingly sophisticated threats.
