According to Cointelegraph, Spanish authorities have apprehended six individuals involved in a sophisticated global investment scam that exploited artificial intelligence to defraud over $20 million from at least 208 victims. The operation, which utilized deepfake advertisements featuring prominent personalities, promised high returns on cryptocurrency investments. Victims were targeted through manipulated ads and were often deceived multiple times by the fraudsters.
The scammers initially lured victims with promises of lucrative crypto investments, only to steal their funds. Subsequently, they contacted the victims again, posing as investment managers and claiming that the stolen funds were frozen, offering to recover them for a fee. Spanish police revealed that victims, desperate to retrieve their money, often fell for this secondary scam. The fraudsters further exploited the situation by impersonating Europol agents or UK lawyers, suggesting that the funds could be returned if victims paid taxes in the country where the money was allegedly blocked.
Spanish police have charged the arrested individuals with fraud, money laundering, and document falsification within a criminal organization. During the raid on the alleged leader's residence, authorities seized numerous electronic devices, a simulated weapon, and extensive documentation. The syndicate reportedly established numerous fake companies to channel the stolen funds and used multiple false identities, with the leader alone employing over 50 different aliases.
The investigation has also identified several individuals linked to the scam in other countries, highlighting the extensive reach of the criminal network. Experts have warned of the increasing prevalence of AI-enhanced scams, with blockchain analytics firm Chainalysis noting in its February 2024 report that generative AI is making scams more scalable and affordable for cybercriminals. The Spanish police emphasized that victims were not chosen randomly; algorithms were used to select individuals whose profiles matched the scammers' criteria, further illustrating the sophisticated nature of the operation.
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