ASIC Warns of AI-Enhanced Crypto Scams Like Deepfakes; Australian Investors Lose $1.3B in 2023

• The Australian Securities and Investment Commission (ASIC) has warned that AI-powered crypto scams have contributed to investors losing $1.3B in 2023.
• More scammers use AI technology to create deepfakes of celebrities like Elon Musk and Prince William to lure investors into crypto scams.
• To prevent falling victim, crypto investors should stay up-to-date with scamming tactics andlook for inconsistencies, such as deepfake voice synchronization.
• However, AI is a double-edged sword and can also help protect us, as evidenced by Elliptic using AI to detect $BTC money laundering.

ASIC has warned crypto investors that scammers increasingly use AI to increase the sophistication of scamslike deepfakes.

The Australian financial service has raised the alarm by highlighting such scams have contributed to $1.3B in stolen assets over the past year.

Additionally, the crypto exchange Bitget has warned that deepfakes could cost the crypto industry $25B in 2024 (but uses AI to spot fakes quickly).

Let's dive into the situation and see how crypto investors can avoid falling victim to AI-powered scams.

AI Spurs Next-Level Deepfake Scams

The rapidly growing AI industry, projected to hit $184.04B in 2024, has expanded hackers horizons.

Scammers will continue to adapt and find new ways to lure consumers.Ms Court, ASIC

Many scammers now useuncanny deep fakes featuring celebrities' voices, images, and videos to trick crypto investors into placing their funds into bogus crypto schemes.

For example, ASIC recently closed down Quantum AI, a fake crypto platform that used deepfakes of Chris Hemsworth and Elon Musk to endorse phony investment opportunities with low-cost entry.

Elon Musk has been a prime source of income for scammers, with over 35 YouTube channels falsely using his voice to trick viewers into investing their money.

Deepfake images of Keir Starmer and Prince William were also recently used to advertise Immediate Edge.' This fake crypto platform recently lured 900K people into believing they would win $1K in daily earnings without needing crypto know-how.

How to Dodge AI-Powered Deepfake Scams

As the number of AI-infused deepfake scams continues to rise, there are ways in which you can protect yourself from falling victim:

• Look for inconsistencies like blinking, lip movements, lighting, and voice synchronization.
• Never invest in unrealistic promises regardless of the celebrity endorsement.
• Research the platform thoroughly and check the celebrities' social media accounts for corroboration.
• Keep updated on the latest scam tactics by following related news channels.
• Minimize the amount of personal data you share on online platforms.

Our Verdict - AI is a Double-Edged Sword

While AI-infused deepfakes' realistic nature poses threats, AI isn't all bad.

One example is Elliptic, a blockchain analytics platform that leverages AI-powered solutions to identify suspicious Web3 activity.

Elliptic is used by crypto businesses, law enforcement, financial regulators, and law enforcement agencies to prevent financial crime.

It uses a deep learning model that identifies new money laundering transaction patterns and fraudulent proceeds on crypto exchanges.

However, it's still important that you'reaware of AI-powered scams when navigating the crypto realm.Scammers will continuously refine their approaches in any possible way to mislead consumers.

References

• Online investment trading scams top ASIC's website takedown action (ASIC)
• Growth of the artificial intelligence (AI) market in the United Kingdom from 2021 to 2030 (Statista)
• Cryptocurrency scammers using AI deep fake videos of Keir Starmer and Prince William to target victims (Independent)

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