Key Points
- The Australian Securities and Investments Commission (ASIC) has shut down over 600 crypto scams in the past year.
- Scammers are increasingly using artificial intelligence (AI) techniques like deepfakes for fraudulent activities.
The Australian Securities and Investments Commission (ASIC) is taking significant steps to combat cryptocurrency scams.
However, the emergence of artificial intelligence (AI) use by fraudsters is posing a new challenge.
ASIC’s Fight Against Crypto Scams
On August 19th, ASIC announced that it has closed down more than 600 cryptocurrency scams in the last year.
This number underscores the widespread nature of this type of fraud.
ASIC’s efforts aren’t limited to cryptocurrency, they have also targeted 5,530 counterfeit investment platforms and 1,065 phishing hyperlinks.
Despite these accomplishments, ASIC Deputy Chair Sarah Court cautions that the battle is far from won.
She emphasizes that the scam landscape is rapidly changing.
While technological advancements can enhance our lives, they also open new avenues for exploitation by malicious actors.
AI Misuse in Scams
The use of AI by scammers is a growing concern.
Techniques like deepfakes, which can create realistic video and audio forgeries, are making it increasingly challenging for consumers to differentiate 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 entice victims into low-cost, high-return investment schemes.
These scams often utilize fabricated news articles and reviews to create an illusion of credibility.
The case of Tesla CEO Elon Musk is particularly telling.
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.
Fraudulent Investment Firms and Countermeasures
In July, ASIC exposed Dexa Trade Markets, a fraudulent crypto investment firm.
The firm falsely claimed global regulation, high trading volume, and a large client base.
However, ASIC’s investigation revealed Dexa Trade Markets lacked the licenses to operate in Australia.
In response to these scams, some see AI as a tool to fight back.
SingularityNET CEO Ben Goertzel suggests that AI can analyze data and reports, providing customized summaries of a crypto entity’s reputation.
While not perfect, such tools could identify risks and help consumers make better investment decisions.
Meanwhile, the problem extends beyond deepfakes.
The Australian Competition and Consumer Commission (ACCC) found that over half of crypto ads on Facebook may be scams or violate Meta’s ad policies.
Meta disputes this, stating that the data is outdated and that it has taken steps to address the issue.
