Regula, a global developer of identity verification solutions, has released new insights from its ‘Deepfake Trends 2024’ study, focusing on emerging identity verification (IDV) trends within the crypto industry. The findings reveal that the crypto sector stands out as the only surveyed industry where deepfake fraud surpasses traditional document fraud in prevalence.
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“This shift calls for a reevaluation of identity verification – not just as an onboarding tool, but as a critical defense measure, emphasizing real-time liveness detection and robust, multi-layered security.”
According to Regula’s “Deepfake Trends 2024” study, 57% of Crypto companies report audio deepfake incidents, compared to just 45% facing fake or modified document fraud. The study further reveals that 53% of Crypto firms have encountered video deepfake fraud, cementing deepfakes as a top concern. In contrast, other industries continue to grapple primarily with fake document fraud as their leading threat.
This highlights a unique challenge, as fraudsters pivot toward exploiting sophisticated technologies to outsmart the sector’s security measures.
The study also shows that while the Crypto industry experiences an average loss of $440,000 from advanced fraud techniques like deepfakes, a notable 37% of companies are losing more than $500,000 each.
Fraud Defense in Crypto: What Stands Out?
Crypto organizations are not only more frequently targeted by deepfake fraud but also rely on unique defense strategies. According to the study:
- 57% rely on multi-factor authentication (MFA), for instance email token verification.
- 53% use biometric facial recognition.
- only 37% leverage fingerprint biometrics, compared to a global average of 52%.
- 45% adopt digital document verification combined with liveness checks.
While these measures align with global trends, Crypto companies uniquely prioritize live video interviews. Combined with document verification, this approach is their top fraud prevention strategy, favored by 90% of respondents. For comparison, globally, a mix of biometric verification and online document verification remains the dominant choice, with 93% support.
A Call for Regulatory Action
The Crypto sector also stands out in its demand for stronger oversight of deepfake fraud. 39% of Crypto companies advocate for the establishment of a dedicated regulatory body to monitor and combat deepfake-related threats – well above the global average of 29%.
“Crypto is facing a new frontier in fraud, where deepfake attacks have surpassed traditional threats in prevalence,” said Henry Patishman, Executive Vice President of Identity Verification Solutions at Regula. “This shift calls for a reevaluation of identity verification – not just as an onboarding tool, but as a critical defense measure, emphasizing real-time liveness detection and robust, multi-layered security.”
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