Coinspeaker
Australia’s ASIC Removes 600 Crypto Scams, Warns of AI Fraud Tactics
Australia’s financial watchdog, the Australian Securities and Investments Commission (ASIC), is making strides in the fight against crypto scams, but a new wrinkle is emerging – the growing use of artificial intelligence by fraudsters.
In a recent statement on August 19th, ASIC revealed that it has shut down over 600 crypto scams in the last 12 months, a significant number highlighting the prevalence of this type of fraud. Their efforts extended beyond just crypto, targeting a total of 5,530 fake investment platforms and 1,065 phishing hyperlinks.
However, ASIC Deputy Chair Sarah Court warns that the fight is far from over. “The scams landscape is rapidly evolving,” Court emphasizes. While advancements in technology can improve our lives, they also create new avenues for exploitation by bad actors.
Scammers Misuse AI for Fake Celebrity Endorsements
One area of particular concern is the use of artificial intelligence (AI) by scammers. Techniques like deepfakes, which can create realistic video and audio forgeries, are making it increasingly difficult for consumers to distinguish between legitimate and fraudulent content.
Court cites the misuse of fake celebrity endorsements, including those of Australian actor Chris Hemsworth and tech entrepreneur Elon Musk, to lure victims into low-cost, high-return investment schemes. These scams often leverage fabricated news articles and reviews to create an illusion of legitimacy.
The case of Tesla CEO Elon Musk is particularly illustrative. In June, over 35 YouTube channels simultaneously live-streamed an AI-generated imitation of Musk’s voice, promising doubled cryptocurrency returns for those who invested in the scam. Just weeks later, Bitcoin consulting firm The Bitcoin Way reported another instance of a deepfake scam using Musk’s voice.
Photo: ASIC
Fake Investment Firms and the Fight Back
ASIC exposed Dexa Trade Markets, a fraudulent crypto investment firm, in July. The firm falsely claimed global regulation, high trading volume, and a large client base. However, ASIC’s probe revealed Dexa Trade Markets lacked licenses to operate in Australia.
In response, some view AI as a tool to fight scams. SingularityNET CEO Ben Goertzel suggests AI can analyze data and reports, offering customized summaries of a crypto entity’s reputation. While not perfect, such tools could identify risks and help consumers make better investment choices.
Meanwhile, the issue goes beyond deepfakes. The Australian Competition and Consumer Commission (ACCC) found that over half of crypto ads on Facebook may be scams or breach Meta’s ad policies. Meta contests this, stating the data is outdated and that it has taken steps to resolve the problem.
Australia’s ASIC Removes 600 Crypto Scams, Warns of AI Fraud Tactics
