- Spanish authorities have dismantled a crypto investment scam that defrauded over 200 victims of more than €19 million ($21 million)
- The fraudsters used AI-generated deepfake videos featuring celebrities to lure investors into the scheme
- Six individuals, aged between 34 and 57, have been arrested and charged with fraud, money laundering, and falsifying documents
In a worrying sign of the future of crypto fraud, Spanish police have arrested six individuals involved in a sophisticated effort that used artificial intelligence (AI) to scam over 200 victims of more than €19 million ($21 million). The operation, which spanned two years, saw victims enticed to part with their money through deepfake videos of celebrities promising high returns. The suspects now face serious charges as authorities continue their investigation, but the development sets an alarming precedent already outlined by crypto security firms.
AI Celebs Convinced Investors
Spanish police first became aware of the scam after a man from Granada reported losing €624,000 ($708,000) in a suspected crypto investment fraud. This led authorities to uncover a broader scheme involving AI-generated videos of well-known public figures, used to convince unsuspecting individuals to invest in what appeared to be a high-return crypto venture. To sustain the illusion, the perpetrators told victims that additional payments were required to unlock their original investments, thereby perpetuating the fraud.
The Spanish National Police arrested six individuals, aged between 34 and 57, with the alleged leader of the criminal operation apprehended while attempting to flee to Dubai. The suspects are now facing charges of fraud, money laundering, and falsifying documents. Police have not yet confirmed whether any of the stolen funds have been recovered, and the investigation remains ongoing.
Public Warnings Issued
Authorities have issued warnings to the public about the increasing use of AI in fraudulent schemes, with the Spanish Police stating, “The National Police and the Civil Guard remind citizens of the importance of extreme caution in the face of investment offers that promise high profits and no risks,” emphasizing the need for vigilance against such deceptive practices.
This case highlights the growing trend of cybercriminals leveraging advanced technologies like AI to perpetrate financial frauds, and it is almost certain that we will see such cases increase in number and sophistication as the technology improves.
