AI deepfakes used in crypto fraud and sexual abuse material
AI-generated deepfakes are being used to commit financial fraud against cryptocurrency holders and to create non-consensual sexually explicit images of women and girls. Security firms report the scams are escalating and may target biometric security systems used by digital wallets.
What happened
Gen Digital reported on September 4, 2024, that a scammer group called CryptoCore had used AI-powered deepfakes to defraud cryptocurrency holders and had scammed over $5 million in crypto.
Security firms warned that AI deepfake attacks could expand beyond video and audio to target facial recognition systems used to secure digital wallets.
In South Korea, a Telegram channel with 220,000 members was reportedly producing non-consensual sexually explicit deepfakes on demand, with a media report on August 22 going viral with over 13 million views on X.
Reported impact
Security experts warn that AI-powered deepfake scams targeting cryptocurrency holders are rising and could become more sophisticated and prevalent.
Women in South Korea, some reportedly teenagers, had their likenesses used to create non-consensual sexually explicit deepfakes without their knowledge or consent.
Index analysis
CertiK stated that AI-powered deepfake scams could expand to exploit facial recognition wallet security systems.
Norton's Luis Corrons noted that cryptocurrency transactions are high-value and conducted anonymously, making them attractive targets for cybercriminals with lower risks of detection and legal consequence.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.