The chief security officer of Binance has warned that the sophisticated use of deepfake technology in crypto fraud is on the rise. Fraudsters are utilizing this technology to evade Know Your Customer (KYC) verifications on crypto exchanges such as Binance.
Deepfake technology employs artificial intelligence and machine learning tools to fabricate highly convincing audio, images, or videos that bear an individual’s likeness. While the technology has valid applications, it is increasingly being exploited for scams and deceptive practices.
Deepfakes – A Growing Threat to Crypto Security
In a conversation with Cointelegraph, Binance Chief Security Officer Jimmy Su pointed out a significant uptick in the number of scammers employing deepfake technology to skirt around the exchange’s customer verification procedures.
Su explained that hackers find regular images of their target online and use deepfake tools to create convincing videos, which help them bypass security protocols. He noted that these tools have become so sophisticated that they can accurately follow audio instructions meant to verify whether the user is a real person, and they can do this in real-time.
However, Su doesn’t think that the quality of deepfakes is advanced enough to trick a human observer yet. He pointed out certain visual cues, such as when a user is asked to turn their head to the side, that are still discernible to the human eye. But he cautioned that as technology advances, AI will likely overcome these limitations over time.
Also Read: Carole House Warns: Crypto Innovation Going Overseas Threatens US National Security
Deepfake Attack on Binance’s Chief Communications Officer
In August 2022, Patrick Hillmann, Binance’s chief communications officer, reported that an elaborate hacking group used his previous TV appearances and news interviews to create a deepfake version of him. This fake version was then utilized to conduct Zoom meetings with various crypto project teams, falsely promising opportunities to list their assets on Binance.
Regarding combating such attacks, Su acknowledged, “That’s a very difficult problem to solve. Even if we can control our own videos, there are videos out there that are not owned by us. So one thing, again, is user education.”
Binance’s Strategy to Counteract Deepfake Threats
In response to this increasing threat, Binance is planning to launch a series of blog posts focusing on educating users about risk management. An early draft of a blog post outlining Binance’s cybersecurity measures reveals that the company uses AI and machine learning algorithms to detect unusual login and transaction patterns and other atypical activities on the platform.
