SNEAK PEEK
- ASIC dismantles 615 crypto scams, highlights rising use of AI in fraud tactics.
- AI deepfakes fuel fake celebrity endorsements; ASIC warns of evolving scam threats.
- Over half of Facebook’s crypto ads are scams, ACCC reports amid ongoing crackdowns.
Australia’s financial markets regulator, the Australian Securities and Investments Commission (ASIC), has intensified its battle against cryptocurrency scams, dismantling over 600 fraudulent schemes in the past year.
In a recent statement dated August 19, ASIC revealed that it has successfully taken down more than 5,530 fake investment platforms, 1,065 phishing links, and 615 cryptocurrency investment scams since July 2023.
The regulator’s aggressive crackdown comes as a response to the evolving tactics of crypto fraudsters, who are increasingly using artificial intelligence (AI) to enhance the sophistication of their schemes.
ASIC Deputy Chair Sarah Court expressed concern over the rising use of deepfakes and AI-generated images, which make it more difficult for the public to identify fraudulent activities. She emphasized that the landscape of scams is constantly evolving, with technology developments offering new avenues for scammers to exploit unsuspecting consumers. On average, ASIC removes around 20 investment scam websites daily, highlighting the scale of the issue.
AI-generated fake celebrity endorsements are becoming a significant concern, with scammers frequently using the likenesses of prominent figures like Chris Hemsworth and Elon Musk to lure victims into fraudulent schemes. These scams typically offer minimal upfront costs and promise impossibly high returns, exploiting the public’s trust in these well-known personalities.
Elon Musk, the CEO of Tesla, is a particularly common target for AI-driven crypto scams. On June 6, over 35 YouTube channels were used to live-stream a deepfake of Musk’s voice, falsely assuring viewers that they would receive double the amount of any cryptocurrency they deposited. Another similar AI scam using Musk’s voice was reported by The Bitcoin Way, a Bitcoin consulting firm, on July 27.
ASIC has also identified suspicious entities, such as Dexa Trade Markets, a firm falsely claiming international regulation and massive trading volumes. The firm, however, holds no legitimate licenses to operate in Australia, according to ASIC’s investor alert.
While fraudsters use AI, some believe it could also be part of the solution. In January, Ben Goertzel, CEO of SingularityNET, suggested that AI could help prevent scams by providing consumers with customized summaries of a crypto entity’s reputation. Although not foolproof, this approach could alert potential investors to red flags.
The matter of fake crypto advertisements has also been given attention: the Australian Competition and Consumer Commission (ACCC) noted that more than half of all crypto advertisements posted on Facebook are scams or violate the company’s policies. Meta has dismissed such findings stating that the data is old and efforts have been made to reign in on fraudster operations.
