Increased Usage of Deepfake Videos in Cryptocurrency Scams

Online crypto fraud has increased in the last few months because of the lack of moderation activities on X (formerly Twitter) and the use of artificial intelligence (AI).

EL Pais has reported that during the current time, it has become impossible to ignore false newspaper articles and fake news available on X, quoting celebrities as saying things that they never said.

Rising Deepfake Crypto Scams

Ruth Garcia, Spain’s National Cybersecurity Institute (INCIBE) technician, stated that users easily fall into the trap of deep fakes as they become increasingly sophisticated.

He stated, “In general terms, we are identifying an increase in publications whose purpose is to misinform. But surely the most problematic aspect is the appearance of deepfakes because they are more difficult to identify.”

The report further stated that imitating or mimicking media outlets and falsifying news had become a trend during the crypto boom. The “X” platform is the most popular and a perfect breeding ground for deepfake crypto scams to grow again.

Moreover, Alberto Redondo, head of the Spanish Civil Guard’s criminal cyber-intelligence group, stated that the scam campaigns are cyclical schemes of false investments. 

Currently, a well-organized and serious criminal group carries out the biggest scheme in circulation. The scams take place in phases: one group seeks victims on social media and the other promises crypto investment gains.

Once the victim provides information for the purported crypto purchase, another group collects all the sensitive data to sell to external platforms.

Redondo stated, “In some cases, they even go so far as to impersonate your identity, with all the risks that this entails.”

After the victim falls into the trap, it is not easy to safeguard the victim. Scammers purposefully convince their victims that it is not a good time to withdraw money but rather to invest more.

As per Redondo, when the victims finally realize that they have been scammed and report it, it becomes impossible to recover the lost money because, by that time, these companies will disappear.

Viewpoints in Spain

The journalists in Spain who are working with Spain’s public broadcaster, TVE, are not encouraging viewers to invest in a “super-platform” that ties with the energy company Repsol. For instance, they even shared some clips where news presenters were promoting a product on Instagram or any other social media network.

The scams are also carried out using features of artificial intelligence. Marian Sanchez is a content creator who actively alerts people about such scams and has reported about various such incidents.

Moderation Requirement on X Platform

As soon as Elon Musk took over the Twitter (now X) platform, he fired the content moderators and reinstalled accounts that were expelled for publishing hate speeches or commenting improperly. 

This change allowed advertisers to suspend their advertising or drastically reduce it and campaigns that were prompting scams found it an opportunity. However, the frequency of such campaigns has reduced, and these are still in circulation.

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.