AI deepfake fuels $46M crypto scam targeting Asian singles

Hong Kong police have uncovered a sophisticated $46 million crypto scam using deepfake AI technology, leading to the arrest of 27 individuals. 

The scam targeted men across Asia, exploiting their emotions through fake online romances, ultimately tricking them into investing in a fraudulent cryptocurrency platform.

The scam operation, based in a Hung Hom industrial unit, was active between August and September. 

It involved 21 men and 6 women, aged 21 to 34, who had backgrounds in digital media. 

These individuals collaborated with overseas fraudsters and IT experts to create a fake crypto investment platform. 

Using deepfake AI, they orchestrated elaborate romance scams, mainly targeting victims from regions including mainland China, Taiwan, India, and Singapore.

The scammers developed detailed training manuals in multiple languages, scripting conversations to make victims believe they were engaging in romantic relationships. 

Leveraging AI technology, they used realistic video chats to deceive victims, with the deepfake AI mimicking voices and appearances. 

This created a false sense of connection, encouraging the victims to invest in the fake platform.

Senior Superintendent Fang Chi-kin explained, “They even discussed future plans with the victims, creating a false sense of happiness to encourage them to continue investing.” 

Victims eventually realised they could not withdraw their funds, exposing the fraud. 

Since October 2023, the operation has defrauded victims out of approximately $46 million.

Deepfake technology has become a troubling tool in such scams. 

A recent Bitget Research report noted a 245% surge in malicious activities involving deepfakes in 2024 alone, contributing to billions in global losses. 

Professor John Griffin from the University of Texas highlighted that romance scams caused over $75 billion in losses between January 2020 and February 2024, with many of these operations traced back to Southeast Asia.

Authorities are growing increasingly concerned about the rising trend of deepfake-enabled scams. 

Earlier this year, the Brooklyn District Attorney’s Virtual Currency Unit shut down a similar operation. 

Agencies like the Federal Trade Commission (FTC) and the FBI have issued alerts, warning the public about cryptocurrency-related romance frauds. 

The FTC noted, “No one thinks their online love interest is going to scam them, but scammers are good at what they do.”

Beyond romance scams, deepfake AI has been used in other fraudulent schemes. 

In June, a fake livestream featuring a deepfake of Elon Musk encouraged viewers to deposit cryptocurrency on a fraudulent website, highlighting the wide range of deceptive tactics made possible by this technology.