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The number of crypto scammers targeting naïve investors is growing alongside growing interest in artificial intelligence.
In a disturbing trend, some crypto scammers are now combining the two, using AI to create fake CEOs and other executives in an effort to deceive and defraud potential victims.
On Thursday, the California Department of Financial Protection and Innovation (DFPI) accused five financial services firms of exploiting investor interest in cryptocurrencies by capitalizing on the buzz surrounding artificial intelligence.
Crypto scammers use AI to create fake CEOs
Maxpread Technologies and Harvest Keeper, two of the companies, are accused of misrepresenting their CEOs by using an actor for one and a computer-generated avatar named Gary for the other.
According to the DFPI, the company touted its profitability through a promotional YouTube video using an avatar built on Synthesia.io and programmed to read a script.
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Scammers like to trick investors using fake CEOs, fake algorithms, and Ponzi schemes. Today, we issued cease and desist orders to five entities/individuals who violated CA securities laws. For more information: https://t.co/gj13z2OE4G#investing #hyip #Cryptonews pic.twitter.com/MXHPYwVIny
CA Department of Financial Protection & Innovation (@CaliforniaDFPI) April 19, 2023
Synthesia.io is a video generation platform that uses artificial intelligence to create realistic video content. The platform allows users to create video content by simply typing the script or uploading a voiceover, then selecting an AI-generated presenter or avatar to deliver the content to the screen.
Synthesia.ios AI technology uses deep learning algorithms to create realistic animations and speech, allowing users to quickly and efficiently generate high-quality video content.
On April 8, a video with an address allegedly given by CEO Michael Vanes was uploaded to Maxpread’s official YouTube channel.
Use the latest technology to deceive people
However, the agency claims that this figure does not exist and that Jan Gregory, previously the company’s chief marketing and brand officer, is in fact the actual CEO of Maxpreads.
Elizabeth Smith, a representative for the DFPI, told Forbes in an email that the law enforcement team traced the origins of the avatars to the online 3D modeling and animation platform Synthesia. .io, where she was given the name Gary.
The supposed avatar, who appears to be a balding, middle-aged man with a salt-and-pepper beard, rambles on and on in a synthetic voice throughout the seven-minute video.
In contrast, Harvest Keeper would have employed a human actor to play the role of CEO; despite the company’s claim to use AI to improve crypto trading profits, it seems the company has relied on a human boss instead.
In a statement, DFPI Commissioner Clothilde Hewlett said:
Scammers are taking advantage of the recent buzz around artificial intelligence to lure investors into fake schemes.
Hewlett said they will continue to aggressively pursue these crypto scammers to keep Californians and their investments safe.
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Both organizations remained silent in the face of the accusations. This episode illustrates the need for regulatory monitoring and a warning against the misuse of artificial intelligence in the financial sector.
As these crypto scammers rely on advanced technology to fabricate identities and manipulate data, they are becoming increasingly difficult to spot.
Therefore, investors should be extra vigilant and do their due diligence before investing in any crypto project or startup, no matter how promising it may seem at first glance.
-Featured Image of ArtemisDiana | iStock/Getty Images Plus
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Sources 2/ https://bitcoinist.com/crypto-scammers-used-ai-to-trick-investors/amp/ The mention sources can contact us to remove/changing this article |
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