Digital twins are virtual models mirroring real-world objects or systems, providing a way to simulate and analyze behaviors in real-time. While they are beneficial in industries like healthcare and manufacturing, they have been exploited in the blockchain and cryptocurrency sectors by cybercriminals. Attackers create synthetic identities using stolen data to impersonate individuals, manipulate online communities, and conduct scams. These scams often involve identity cloning, fake influencers, and synthetic KYC techniques, allowing criminals to bypass security measures. Examples of digital twin-related scams include deepfake video calls deceiving executives into transferring large sums of money and UI spoofing that tricks users into divulging sensitive information. Six red flags can help users recognize interactions with synthetic identities, including the presence of urgency, reluctance for live communication, and unfamiliar profiles. Blockchain technology offers potential solutions like decentralized identity verification and NFTs to authenticate identities, thus reducing the risk of such scams. Although blockchain is often targeted by criminals, leveraging its capabilities could enhance security against digital twin-powered fraud.

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