The Threat of Deepfakes in Bitcoin Security

Technology is evolving rapidly. A growing concern for many investors, including those in the Bitcoin space, is the rise of deepfake videos - AI-generated media that can realistically mimic a person's voice, appearance, and behavior.

Deepfakes have existed for several years, but what was once easily distinguishable is now approaching real-time realism. We may not be far from a time when bad actors can generate real-time video or audio impersonations that are nearly indistinguishable from reality. These scenarios raise an important question: how do you protect your Bitcoin from impersonation-based attacks?

Investors are increasingly asking, "Could someone fake my identity convincingly enough to access my account and move funds without my knowledge?"

Why Bitcoin Custody Is Vulnerable to Deepfakes

Bitcoin transactions are final. Once a transaction is sent, it cannot be undone. This makes Bitcoin holders particularly appealing targets for deepfake-based attacks.

Traditional financial institutions often have layers of human review, internal governance, and redundancies that slow down fraud. In contrast, some Bitcoin financial service platforms, especially those designed for retail, may have fewer controls in place. Some of these platforms allow Bitcoin to be withdrawn with minimal authentication, meaning leaked credentials and compromised two-factor codes could result in a full account takeover.

But what about platforms that do use video verification as an additional control mechanism? Are they totally safe from this risk?

How Multi-Institution Custody Protects Against Deepfakes

Multi-institution custody introduces structural safeguards that significantly increase the difficulty of executing deepfake-based attacks. Here's how it works:

• Your Bitcoin is held in a segregated wallet protected by standard credentials and two-factor authentication as the first line of defense
• Three independent institutions safeguard your assets, none of which control your Bitcoin
• Withdrawing funds requires verification with two of the three institutions
• Live interactions are mandatory, and recorded videos or impersonation attempts are not sufficient for the withdrawal process

To provide more color on the human verification process as part of Onramp’s verification process:

• Live video verification call with a member of the Onramp operations team
• Live video verification call with a member of the BitGo Trust operations team
• Time-based review windows to prevent urgency-based manipulation i.e., legal timelocks
• Behavioral red flags and linguistic pattern analysis to detect coercion or AI synthesis

This process introduces operational, psychological, and procedural friction, creating barriers that deepfakes cannot easily overcome.

A Higher Bar for Attackers

Imagine a malicious actor gains access to your email or account credentials and uses a deepfake to request a Bitcoin withdrawal.

On most platforms, video is not even required to initiate a withdrawal, and may have limited safeguards beyond basic two-factor authentication. But with multi-institution custody, that attacker would need to:

• Impersonate you on two live video calls with two independent institutions
• Each call must be convincing enough to pass independent review by trained operations teams at both institutions
• Pass document verification checks, such as presenting a government ID during the live call

The result: one weak link within a single organization does not suffice. Attackers must fool multiple individuals within multiple independent organizations, with built-in delays and review periods that reduce risk.

Onramp’s Protocol for Deepfake Defense

Onramp's custody model was built with real-world threats in mind, including deepfakes.

Here’s how we help defend your Bitcoin:

• A two-of-three multi-institution custody structure
• Live video verification calls for withdrawal requests
• Identity validation through government-issued ID checks
• Optional seven-day delay between institutional signatures
• Optional in-person verification for private clients
• Behavioral and tone-based fraud flagging in partnership with our custodial partners

Our system is designed to ensure that even if your credentials are compromised, your Bitcoin cannot be moved based on a manipulated video.

Final Thoughts

Deepfakes are no longer theoretical. The technology is advancing quickly, and while most deepfakes today cannot yet mimic a live, interactive conversation in real time, that could change.

Bitcoin investors are thoughtfully looking for solutions to mitigate the growing threat vectors to their bitcoin holdings. Multi-institution custody offers a level of redundancy and human oversight that protects against even the most advanced impersonation attempts.

If you want to explore a long-term Bitcoin custody solution that protects against deepfakes and other emerging risks, we are here to help.

Our team is here to support you in your decision-making process. We’ve guided thousands of clients and can help you make the right decision for your circumstances - book a consultation.