Millions

Fortune

Bitcoin

when

The post <a href="https://coinpedia.org/news/how-ai-driven-deep-fake-scammers-are-looting-millions-from-crypto-users/">How AI-Driven Deep Fake Scammers Are Looting Millions From Crypto Users</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
Scammers are using Deepfake AI technology to con millions of dollars from crypto users and this is becoming a major issue in the crypto space.&nbsp; 
The cryptocurrency market has recently faced a major issue when the deepfake AI application was used to conduct a large-scale theft and take $2 million from an OKX user.&nbsp; 
<h2 class="wp-block-heading" id="h-here-is-how-the-hack-unfolded-nbsp">Here is how the hack unfolded&nbsp;</h2> 
The incident was reported by the victim, identified as Lai Japanese Fang Chang on 3 June.<a href="https://twitter.com/WuBlockchain/status/1797569050090057957" target="_blank" rel="noreferrer noopener nofollow"> WuBlockchain</a> cited local media stating that initially, the scammers got Chang’s details from a data breach on Telegram. This informed them on how to access his email on OKX using the “forgot password” option.&nbsp; 
Identifying themselves as Chang, the scammers used a deepfake video that looked real to change most of his security features such as the email ID and Google authenticator. Unfortunately for Chang, the hackers did not waste time and within one day they stole more than $2 million worth of crypto assets from his account.&nbsp; 
<h2 class="wp-block-heading" id="h-deepfake-ai-a-new-weapon-for-cybercriminals-nbsp">Deepfake AI: A New Weapon for Cybercriminals&nbsp;</h2> 
Deepfake is often defined as a type of technique that can clone a person’s voice, face, and even movement, and it is a valuable asset to cybercriminals at the moment. These deepfakes are in a way artificially created and are employed to spread vicious messages and fake news, which is extremely hard to counter.&nbsp; 
This recent fraud at the <a href="https://coinpedia.org/exchange/okx-exchange/" target="_blank" rel="noreferrer noopener">OKX exchange</a> is a continuity of efficiency of AI frauds in the industry. Deepfake scams are increasingly prevalent and able to take advantage of the security of the services and the general population due to high-quality mimicry.&nbsp; 
Which is why AI scams are on the rise 
Deepfake AI has become a common feature of cyber attacks. For instance, <a href="https://fortune.com/crypto/2024/02/06/next-wave-of-ai-fraud-onlyfake/" target="_blank" rel="noreferrer noopener nofollow">Fortune</a> published a story about OnlyFake a site that can produce amazingly real fake IDs. These forgeries can mitigate know-your-customer (KYC) processes at crypto exchanges like the OKX exchange and even cheat payment platforms like PayPal.&nbsp; 
<h2 class="wp-block-heading" id="h-okx-s-reply-and-the-continuation-of-security-risks-nbsp">OKX’s reply and the continuation of security risks&nbsp;</h2> 
As per the report, OKX has acknowledged the attack and is working closely with the police to help the affected party recover the stolen items. However, the exchange is facing several cases of security breaches that have affected its reputation. Such are the recent deepfake AI scam, the cases with the page hijacking techniques, and the API vulnerabilities.&nbsp; 
When AI technology continues to be implemented in the market, to solve the new types of attacks, the crypto-currency industries have to enhance the secure system to protect against new techniques. Consumers are also encouraged to embrace safety practices to enhance their protection of that valuable property from constantly more intelligent hackers.&nbsp; 
Did You Know : <a href="https://coinpedia.org/news/dmm-bitcoin-to-launch-a-320-million-fundraising-after-undergoing-a-major-hack/">DMM Bitcoin Hacked for $320 Million: Will Users Be Compensated?</a>

How AI-Driven Deep Fake Scammers Are Looting Millions From Crypto Users

Table of Contents

CoinPedia News

Other articles published on Jun 5, 2024

New Texas Stock Exchange Gets Backing from BlackRock and Citadel, Aims for 2025 Launch

BlockDAG’s Keynote 2 Eyes $20 Target by 2027, Outshines Ethereum ETF & Uniswap Price Gains

MoonBag Crypto Steals the Spotlight from Internet Computer & Chainlink with 15000% ROI

Morpheus-Based Personalized Chatbot Platform: Persona - Combining EEG Technology for the Web 3

Hong Kong Shuts Out Unlicensed Crypto Exchanges As Deadline Expires

GALA To Break Out Of Darvas Box – Analysts’ Optimism Analyzed

Join our free newsletter for daily crypto updates!