Scammers create synthetic identities through deepfakes and stolen data, tricking users into fraudulent crypto transactions.
Digital twins are virtual models of real-world objects, systems, or processes. They enable real-time simulations, monitoring, and predictions, helping industries like healthcare and manufacturing optimise resources. In the crypto world, cybercriminals have found a way to exploit this technology for fraudulent activities.
Scammers create synthetic identities by gathering personal data from various sources. These digital twins are used to impersonate influencers or executives, promoting fake investment schemes or stealing funds. The unregulated nature of crypto platforms makes it easier for criminals to exploit users.
Real-world scams are already happening. Deepfake CEO videos have tricked executives into transferring funds under false pretences. Counterfeit crypto platforms have also stolen sensitive information from users. These scams highlight the risks of AI-powered digital twins in the crypto space.
Blockchain offers solutions to combat these frauds. Decentralised identities (DID) and NFT identity markers can verify interactions. Blockchain’s immutable audit trails and smart contracts can help secure transactions and protect users from digital twin scams.
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