Crypto entrepreneurs are cautioned about potential 'deepfake' deceptions by Sandeep Nailwal
In the rapidly evolving world of cryptocurrencies, deepfake scams are becoming a significant threat. These sophisticated schemes, utilising artificial intelligence (AI) technology, have led to substantial financial losses for entrepreneurs and executives.
Recently, Kaavya Prasad, co-founder of Rabble, was targeted in such a scam. Prasad received a Zoom link for a supposed meeting with Sandeep Nailwal, co-founder of Polygon, via Telegram. The avatar of Nailwal in the call moved and "seemed real", but upon closer inspection, Prasad realised the profile was fake and had been blocked on Telegram.
Similar attacks have been reported in the crypto ecosystem, such as the case of Kenny Li, co-founder of Manta Network. The scams often begin with the hacking of key individuals' accounts, like Shreyansh Singh, leader of Polygon Ventures, whose Telegram account was compromised. The scammers then use these accounts to send out invitations to meetings via links to Zoom video calls, where participants encounter deepfake videos of Nailwal, Singh, and a woman posing as part of the Polygon team, without audio.
The absence of audio in these calls is a deliberate strategy by scammers to avoid interactions that could expose the falsity of the encounter. Prasad noticed that the link for a Zoom meeting was a "red flag". He warns that as cryptocurrencies are adopted globally, these fraudulent schemes will become more sophisticated.
To combat these scams, crypto entrepreneurs are advised to employ a layered defence strategy. This includes utilising institutional-grade custody solutions, implementing rigorous verification protocols, employee and user awareness training, adopting technological defences, and developing swift legal response mechanisms.
Nailwal recommends separating wallet signing activities from daily device use to reduce the risk of exposure to malicious software or targeted attacks. He also advises the crypto community to avoid installing any software or script during unsolicited interactions, as scammers often request the installation of a software development kit (SDK) during the calls, which is actually malware designed to infect the device and steal sensitive information.
Cryptocurrency investments are not fully regulated and may not be suitable for retail investors due to their high volatility. There is a risk of losing the entire amount invested. Nailwal expresses frustration with the lack of effective response from platforms like Telegram to these incidents.
As the crypto world continues to grow, it is crucial for all participants to remain vigilant and employ robust security measures to protect themselves from these increasingly sophisticated deepfake scams.
The evolving crypto world increasingly calls for advanced cybersecurity measures due to growing instances of deepfake scams, as demonstrated by Kenny Li's and Kaavya Prasad's cases. To fortify defenses, it's crucial for entrepreneurs to leverage blockchain technology, implement robust verification protocols, and deploy technological defenses like institutional-grade custody solutions, employee training, and swift legal response mechanisms. While crypto investments may present attractive opportunities, their volatility necessitates heightened vigilance, especially in the face of escalating cyber threats such as deepfake schemes.
