The Good Tech Companies - Over One-Third of Crypto Companies Lose More Than $500,000 Each to Deepfake Fraud

Episode Date: October 31, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/over-one-third-of-crypto-companies-lose-more-than-$500000-each-to-deepfake-fraud. A Regula study reveals that over one-third of crypto companies lose more than $500,000 each to deepfake fraud, stressing the need for stronger security. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #cryptocurrency, #regula-deepfake-trends-2024, #deepfake-fraud-in-crypto, #deepfake-fraud, #fraud-prevention, #sapio-research, #regula-press-release, #good-company, and more. This story was written by: @pressreleases. Learn more about this writer by checking @pressreleases's about page, and for more stories, please visit hackernoon.com. Regula's "Deepfake Trends 2024" study finds that 37% of crypto companies face losses exceeding $500,000 due to deepfake fraud, with the average loss at $440,000. Many firms report significant vulnerabilities to both audio and video deepfakes, underscoring the need for improved security strategies like multifactor authentication.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Over one-third of crypto companies lose more than $500,000 each to deepfake fraud, by Hacker Noon press releases. Image. Regula's survey shows that, while average industry losses from deepfake fraud sit at $440,000, 37% of crypto companies are losing over $500,000. Reston, VA. A new, Deepfake Trends 2024, study by Regula, a global developer of forensic devices and identity verification solutions, highlights the pressing financial challenges posed by deepfakes to the crypto industry. The study reveals that while the industry averages a loss of $440,000 due to advanced

fraud techniques, a significant portion—37% of crypto companies—are facing losses exceeding half a million dollars each. Deepfakes, which manipulate audio and video to create convincing yet fraudulent content, have become a major concern for more than half of the organizations in the crypto sector. According to the study, 53% of businesses in the industry have encountered incidents of video deepfakes. Notably, the crypto firms are particularly vulnerable to audio deepfake fraud, with 57% of respondents reporting such incidents, compared to 50% in other sectors. This heightened susceptibility may stem from the industry's reliance on specific verification methods.

The study identifies multi-factor authentication, MFA, as the most widely employed mitigation strategy, utilized by 57% of respondents. In contrast, other industries often prefer biometric verification as their top choice audio verification is one of the components within mfa enabling users to confirm their identity through various methods such as a password text message code and their voice the impact of deepfake fraud on the crypto industry extends beyond immediate financial losses organizations face substantial costs with 35 percent of respondents citing legal expenses as a significant burden. Penalties and fines were reported by 33% of organizations, reflecting financial repercussions from regulatory violations or legal settlements.

Additionally, 27% of respondents acknowledge reputational risk as a key concern, highlighting the potential damage to trust and credibility that deepfake incidents can cause. Greater than losing $500,000 to a single type of fraud is staggering for any organization, greater than especially in a fast-paced industry like crypto, said Henry Petishman, greater than executive vice president of identity verification solutions at Regula. This greater than finding underscores the need for robust security measures, grounded in best greater than practice. As the threat landscape evolves, it's crucial for companies to adopt greater than a liveness-centric approach, focusing on real-time verification of people and greater than only physical objects. Find more insights on deepfake fraud in the survey report.

Read the full version 1R website. Additional resources. Filled Circle Identity Fraud Statistics 2023. How businesses respond to the issue version 1 our website additional resources filled circle identity fraud statistics 2023 how businesses respond to the issue filled circle data from 2022 one-third of global businesses already hit by voice and video deep fake fraud filled circle financial organizations challenged by the growing community of digital nomads filled circle the anatomy of id document liveness detection info the research was initiated by Regula and conducted by Sapio Research in August 2024 using an online survey of 575 business decision makers across the financial services, including traditional banking and fintech, crypto,

technology, telecommunications, aviation, healthcare, and law enforcement sectors. The respondent geography included Germany, Mexico, the UAE, the US, and law enforcement sectors. The respondent geography included Germany, Mexico, the UAE, the US, and Singapore. About RegulaRegula is a global developer of forensic devices and identity verification solutions. With our 30-plus years of experience in forensic research and the largest library of document templates in the world, we create breakthrough technologies in document and biometric verification. Our hardware and software solutions allow over 1,000 organizations and 80 border control authorities globally to provide top-notch client service without compromising safety, security or speed. Regula was repeatedly named a representative vendor in the Gartner Market

Guide for Identity Verification. Learn more at www.regulaforensics.com. Thank you for listening to this Hackernoon story, read by Artificial Intelligence. Visit hackernoon.com to read, write, learn and publish.