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

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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. 

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. 

The incident was reported by the victim, identified as Lai Japanese Fang Chang on 3 June. WuBlockchain 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. 

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. 

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. 

This recent fraud at the OKX exchange 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. 

Which is why AI scams are on the rise

Deepfake AI has become a common feature of cyber attacks. For instance, Fortune 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. 

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. 

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. 

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