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Crypto ranks as second most targeted industry for ID fraudsters in 2024

Author: Content Editor
The cryptocurrency industry has become a target for identity-related fraudulent activities, with crypto-related platforms accounting for 29% of global identity fraud attempts in Q2 2024. As payment providers tighten security protocols, fraudsters are turning to decentralized exchanges and wallets due to the anonymity of transactions on blockchain networks. Cybercriminals are using impersonation bots enhanced with deepfake technology to create realistic fake accounts and execute fraudulent schemes. Deepfakes promoting crypto scams have targeted prominent figures like Vitalik Buterin, Brad Garlinghouse, Elon Musk, and Tim Cook. Losses from deepfake scams have exceeded $79 billion in the past two years. In Q2 2024, the crypto industry recorded $572 million in losses to scams and hacks. While efforts to improve security measures have led to a reduction in cryptocurrency crime, ransomware and dark web market activity related to crypto have surged recently. Identity fraud rates in the Asia-Pacific region have risen by 24% between 2022 and 2023. The shift towards decentralized finance (DeFi) and Fraud-as-a-Service has also contributed to the vulnerability of the crypto industry, with $739 million stolen in Q1 2024 alone due to phishing, hacks, and weak code security.

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