Deepfakes in the service of crypto scammers

The blockchain was allegedly attacked 303 times last year according to SlowMist, a company that specializes in blockchain security. A third of the incidents were caused by phishing, Rug Pulls and other scams.

Don't believe everything you see: deepfakes of SBF, Binance managers, and Elon Musk

Crypto enthusiasts should take extra caution when watching deepfakes, or videos made with neural networks. Using original videos and photos as a base, AI creates the video almost pixel-by-pixel. Deepfakes of well-known industry figures are the most popular scammers' trick.

A video by former FTX CEO Sam Bankman-Fried (SBF) shocked the crypto community last fall. “Hello everyone. As you know our FTX exchange is going bankrupt. But I hasten to inform all users that you should not panic. As compensation for the loss we have prepared a giveaway for you in which you can double your cryptocurrency. To do this, just go to the site…”  promised a man who looked like SBF and spoke like SBF. The deepfake was shared on Twitter by a verified account that appears to be identical to a genuine SBF account. The scammers used old businessman interview footage and a voice emulator to lure crypto enthusiasts to a malicious website. By the way, Twitter CEO Elon Musk's idea to sell “blue ticks” for $8 has increased the flow of scams and jokes based on trust in verified accounts.

Patrick Hillmann, Binance's Chief Communications Officer, has also become a target for scammers. Deepfake of Hillmann held meetings with potential partners of the exchange. The hackers created the manager's digital twin using videos of his interviews and speeches. They did not just consider the fact that he put on weight during his most recent illness. Everything was only made clear when Hillmann started receiving letters of gratitude for his successful meeting with the deepfake.  Along the way, it was discovered that numerous hackers “work” for Binance as top managers on Telegram, LinkedIn, and other social media platforms.

Elon Musk's numerous TED Talk and other TV appearances have turned into a gold mine for con artists. The sensational deepfake of Musk's TED talk, in which he enthusiastically praised the cryptocurrency platform with a 30% return on deposits, was posted on Twitter. The “live broadcasts” of a businessman’s deepfake on YouTube are also very popular among scammers.

If I had a Dogecoin for every crypto scam I saw, we'd have 100 billion Dogecoin

complains Elon Musk

How to identify a deepfake

Technology is rapidly evolving, and it takes more and more time to discern fact from fiction. And usually, there is no time to spare: the previous year's market shocks did their job. The investor occasionally has only a few minutes to decide in order to avoid a loss. There isn't enough time for a comprehensive visual inspection.

Crypto enthusiasts tend to be anxious and favor the “it's better to regret what you have done than what you haven't” philosophy. And it leads them right into the hands of scammers. For example, suppose you saw a video of the CEO of a large cryptocurrency exchange. He announces in it that withdrawals will be halted within the hour. Which would you prefer to do: withdraw the crypto right away or spend hours carefully examining a senior manager's face?

However, an easy method for identifying a deepfake still exists. Take a closer look at how the conditional Elon Musk blinks his eyes before going to a phishing site. You're dealing with a deepfake if he does it in an unnatural way. The truth is that neural networks create videos from images of people with open eyes. As a result, AI's imitation process for blinking is currently imperfect.

Furthermore, a number of companies and startups have already developed a set of publicly available deepfake detectors. These are Deepfake-o-Meter and Sensity online platforms, Deepware Scanner, Microsoft Video Authenticator, DeepDetector, and DeepfakeProof from DuckDuckGoose, Reality Defender utility, etc.

Finally, the old adage still holds true: “If it sounds too good to be true, it probably is.” Fraudsters use advanced technology to pull the wool over your eyes. Remember that your common sense is the best defense.