Six arrested for AI-powered investment scams that stole $20 million

Spain's police arrested six individuals behind a large-scale cryptocurrency investment scam that used AI tools to generate deepfake ads featuring popular public figures to lure people. At some point, the scammers, who posed as financial advisors or even simulated romantic relationships with the victims, informed them that their investments had been blocked and their money could only be recovered if they made a large payment. The scam had multiple phases, starting with typical "romance baiting" or the threat actors posing as "financial advisors" and ending with a twist of fake money recovery claims. In the final phase, the victims were contacted by the scammers again, who now posed as Europol agents or UK lawyers, claiming that their funds had been recovered and only required them to cover local tax costs to get them back. "With the help of Artificial Intelligence, the scammers created fake ads featuring well-known national figures apparently recommending investing in these products," explains the Policia National announcement. The police warn the public to be wary of promises of guaranteed returns and always verify the legitimacy and trustworthiness of an investment platform before depositing any funds. Victims initially saw large investment returns on what were essentially fake platforms that generated false figures. Bill Toulas Bill Toulas is a tech writer and infosec news reporter with over a decade of experience working on various online publications, covering open-source, Linux, malware, data breach incidents, and hacks. The police's announcement underlines the complexity of the operation, explaining that the criminals had created multiple shell companies to launder the crime proceeds. Realistic AI-generated deepfake videos are now easy to create, so users should not be influenced by famous people supposedly promoting investment platforms. Victims were chosen via algorithms that selected persons whose profiles matched the cybercriminal's targeting requirements and subsequently targeted by AI-generated deepfake ads. Other red flags include pressure to invest, inability to withdraw, unexpected balance "blocks," and claims about additional "fees/taxes" required to withdraw money.

This Cyber News was published on www.bleepingcomputer.com. Publication date: Mon, 07 Apr 2025 19:00:11 +0000


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