70% of Crypto Companies Report Deepfake Fraud Rise

Share this post

Sumsub, a full-cycle verification platform, today releases its “State of Verification and Monitoring in the Crypto Industry 2023” report. The findings focus on the regulations and verification practices for crypto companies, with highlights from verification performance and identity fraud statistics.

The intention of the report is to provide crypto businesses with a clear understanding of industry verification standards and trends, offering insights into enhancing user experience and improving operations. To gather direct insights, Sumsub conducted a survey among 100+ crypto companies, and combined its results with expert interviews of professionals in the crypto industry. Overall, 800,000+ fraud attempts were studied for this report. All data was aggregated and anonymized.

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 remain a growing concern for the crypto industry, with 70% of noting their increasing popularity among fraudsters;
  • In 2023, 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 – both financial and reputational – connected to applicants;
  • The shift from document-based to Non-Doc verification solutions is underway in crypto, demonstrating faster verification, from 38 to as fast as five seconds and from 46 to as quick as three seconds in Brazil and Ghana, respectively. 

“As the crypto industry continues to evolve, we see a global trend of decreasing onboarding time for crypto users,“ comments Jacob Sever, co-founder and Chief Innovation Officer of Sumsub. “From 2022 to 2023, verification time nearly halved across all regions, driven by the growing expectation of swifter processes among users. As such, providers face the challenge of complying with increasingly stringent regulations, making solutions such as Non-Doc Verification essential. By expediting onboarding processes, crypto firms eliminate the need for users to upload any documents, better allowing providers to keep pace with industry demands and enhance pass rates, all while thwarting the threat of synthetic fraud.”

To download the free “State of Verification and Monitoring in the Crypto Industry 2023” report, visit https://sumsub.com/crypto-report-2023/.

Original
Article by Sumsub

More To Explore

Membership

Merchant Community Membership

Are you a member of The Payments Association?

Member benefits include free tickets, discounts to more tickets, elevated brand visibility and more. Sign in to book tickets and find out more.

Welcome

Log in to access complimentary passes or discounts and access exclusive content as part of your membership. An auto-login link will be sent directly to your email.

Having trouble signing?

We use an auto-login link to ensure optimum security for your members hub. Simply enter your professional work e-mail address into the input area and you’ll receive a link to directly access your account.

First things first

Have you set up your Member account yet? If not, click here to do so.

Still not receiving your auto-login link?

Instead of using passwords, we e-mail you a link to log in to the site. This allows us to automatically verify you and apply member benefits based on your e-mail domain name.

Please click the button below which relates to the issue you’re having.

I didn't receive an e-mail

Tip: Check your spam

Sometimes our e-mails end up in spam. Make sure to check your spam folder for e-mails from The Payments Association

Tip: Check “other” tabs

Most modern e-mail clients now separate e-mails into different tabs. For example, Outlook has an “Other” tab, and Gmail has tabs for different types of e-mails, such as promotional.

Tip: Click the link within 60 minutes

For security reasons the link will expire after 60 minutes. Try submitting the login form again and wait a few seconds for the e-mail to arrive.

Tip: Only click once

The link will only work one time – once it’s been clicked, the link won’t log you in again. Instead, you’ll need to go back to the login screen and generate a new link.

Tip: Delete old login e-mails

Make sure you’re clicking the link on the most recent e-mail that’s been sent to you. We recommend deleting the e-mail once you’ve clicked the link.

Tip: Check your security policies

Some security systems will automatically click on links in e-mails to check for phishing, malware, viruses and other malicious threats. If these have been clicked, it won’t work when you try to click on the link.

Need to change your e-mail address?

For security reasons, e-mail address changes can only be complete by your Member Engagement Manager. Please contact the team directly for further help.

Still got a question?