70% of Crypto Companies Report Deepfake Fraud Rise

70% of Crypto Companies Report Deepfake Fraud Rise

October 26, 2023 at 11:32PM

Verification platform Sumsub has released its “State of Verification and Monitoring in the Crypto Industry 2023” report, highlighting the regulations and practices surrounding crypto company verification. The report reveals increasing fraud patterns and deepfake usage, with 77% of companies experiencing new attack methods. It also identifies a shift towards non-document verification solutions, which offer faster verification times. Sumsub’s findings are based on analysis of millions of verification checks from the first eight months of 2023 and the same period in 2022. The full report can be accessed on Sumsub’s website.

Sumsub, a full-cycle verification platform, has released its “State of Verification and Monitoring in the Crypto Industry 2023” report. The report provides insights into the regulations and verification practices for crypto companies, highlighting verification performance and identity fraud statistics. The findings are based on a survey conducted among 100+ crypto companies, combined with expert interviews in the industry. In total, the report studied over 800,000 fraud attempts.

Key findings from the report include:

– 77% of crypto companies observed new fraud patterns and schemes this year, with attack methods becoming more professional.
– Deepfakes are a growing concern in the crypto industry, with 70% of companies noting their increasing popularity among fraudsters.
– The number of deepfakes in the crypto industry increased by 128% compared to 2022.
– 55% of crypto companies reported an increase in fraud-related losses connected to applicants, both financial and reputational.
– The shift from document-based to Non-Doc Verification solutions is happening in the crypto industry, with faster verification times.

According to Jacob Sever, co-founder and Chief Innovation Officer of Sumsub, the crypto industry is seeing a trend of decreasing onboarding time for users. Verification time nearly halved from 2022 to 2023, driven by the expectation of swifter processes among users. Non-Doc Verification solutions are essential in meeting these demands and combating synthetic fraud.

To access the free “State of Verification and Monitoring in the Crypto Industry 2023” report, visit the provided link. The statistics presented in the report are based on Sumsub’s internal data on millions of verification checks analyzed in the first 8 months of 2023 and the same period in 2022.

Sumsub is a full-cycle verification platform that offers customizable KYC, KYB, transaction monitoring, and fraud prevention solutions. They have over 2,000 clients across various industries, including fintech, crypto, transportation, trading, e-commerce, and gaming.

Source: Sumsub via PRNewswire

Full Article