Beware, Everyone
Losses from Crypto Counterfeit Forms Could Hit $25 Billion This Year
Losses from cryptocurrency counterfeiting and scams could exceed $25 billion by 2024, more than doubling from last year.
Based on Sumsub research data, Bitget recorded a 245% increase in global counterfeits in 2024. China, Germany, Ukraine, the United States, Vietnam, and the United Kingdom were the countries with the most counterfeits in the first quarter of 2024. The crypto industry also saw a 217% increase in counterfeits compared to the first quarter of 2023.
Bitget reported an increase in deepfakes that led to a $6.3 billion loss in crypto in the first quarter. They predict losses will increase to $10 billion per quarter by 2025.
Bitget CEO Gracy Chen said deepfakes are becoming more prevalent in the crypto space and stressed the importance of education and awareness to prevent them.
Deepfake scammers still use old tactics such as fake projects, phishing attacks, and Ponzi schemes, using deepfake technology to gain investors' trust. Over the past two years, this method has accounted for more than half of all deepfake-related crypto losses.
By impersonating influential figures, these schemes create the illusion of credibility and large capitalization, thereby attracting investment without due diligence, Bitget Research said.
