In recent years, cryptocurrency has developed from a niche interest to a global phenomenon. But with popularity comes danger, especially in the form of scams. One of the most perfidious methods is the Abuse by prominent personalities such as Annalena Baerbockto deceive gullible investors. In this blog post, we will explore how crypto scammers are using new technologies such as AI to create generated videos and what steps investors can take to protect themselves.

AI-generated videos - a new trend in fraud

Deepfake technology has made great strides in recent years. This technology makes it possible to create convincing but fake videos that make it look like a real person is saying or doing something they never actually did. This poses a huge threat, not only to privacy, but also to security. In addition to manipulating consumers and investors, false information can also be deliberately disseminated, which can have social implications. It is therefore a threat that is difficult to contain because the technology is freely available.

Crypto scammers use this technology to create videos of prominent politicians. These fake videos show the politicians seemingly endorsing cryptocurrencies or recommending investments in certain projects. As many people trust politicians, this can tempt potential investors to fall for the scam.

Another scam is the Brad Garlinghouse scamin which deepfake videos of the Ripple CEO were deliberately used. This means that the problem is not isolated, but can affect other public figures at any time.

The challenges of recognition

Detecting deepfake videos is becoming increasingly difficult as technology becomes more advanced. Often these videos are so well made that even experts have difficulty distinguishing them from real footage. This makes it almost impossible for the general public to assess the authenticity of such content.

Fraudsters use a variety of techniques to deceive investors. In addition to fake videos, these include manipulated interviews, fake articles and invented success stories. The aim is to inspire confidence and persuade victims to invest in non-existent crypto projects. The number of supposed trading apps and AI-supported products is also increasing. Celebrities advertise seemingly reputable financial products or software in deepfake videos.

We are seeing increased activity in this sub-category of financial fraud in particular. Here, fraudsters are specifically using the topic of AI and playing on the trust of investors who assume they are investing in a particularly sophisticated product.

Psychological pressure often plays a role

Fraudsters often rely on psychological pressure. For example, by claiming it is a time-limited offer, they create the feeling among victims that they must act quickly so as not to miss an opportunity. Such tactics often lead to investors making rash decisions. In general, consumers should not be led by statements about a limited offer. It's not just scammers who use this, airlines and online stores also use the power of psychological pressure. You can practise dealing with this in everyday life by not allowing yourself to be pressured into making purchasing decisions.

Another tool in the scam box is the use of “social proof”. Fraudsters forge positive testimonials or create fake profiles to make it appear that well-known personalities or a large community are behind the project. This increases the victims' trust and makes it more likely that they will invest. Interested parties should therefore always look at where these reviews are presented online. It makes a difference whether they come from Trustpilot, for example, or are only published on a company's website.

Spreading fake content via social media

Platforms such as Facebook, Twitter and Instagram play a crucial role in the distribution of fake content. Fraudsters use these networks to spread their messages virally and reach the widest possible target group. Often, targeted ads are placed that are specifically aimed at potential investors. As a result, this target group is much more likely to see the fraudulent ads based on their interests.

Another common strategy is to mix fake posts with genuine, trustworthy messages. This makes it difficult for the average user to verify the authenticity of the information. Fraudsters also use bots to speed up the distribution of their content and achieve a greater reach. As a result, many posts can no longer be immediately distinguished from organic posts.

Another means is the involvement of influencers. This is sometimes done with their knowledge, but much more often unknowingly. By paying or manipulating these people, the fraudsters are able to make their fake information appear even more credible. Influencers who are not aware of their responsibility can thus unintentionally contribute to the spread of fraud. Financial incentives also play a role here, as the fraudsters are highly organized and financially strong. It is therefore quite possible that they offer influencers attractive sums and pay cryptocurrencies. In this way, they remain unrecognized and buy themselves reach and credibility.

Protective measures for crypto investors

The first step in protecting against crypto fraud is education. Investors should regularly inform themselves about current fraud methods and know how to recognize them. This can be done by attending seminars, reading specialist literature or talking to experienced investors.

A healthy degree of skepticism is essential. Offers that seem too good to be true probably are. Investors should always carry out background research and not be afraid to ask critical questions. Special care should be taken with offers that promise a quick and high profit.

Technology itself can also help with protection. There are now numerous tools and software that help to identify potentially harmful content. Such tools can either be used free of charge or as part of a subscription and offer an additional layer of security.

CryptoTracing: Support for those affected by crypto fraud

CryptoTracing offers targeted help for those who have fallen victim to crypto fraud or suspect that they have been taken in by a dubious investment. CryptoTracing specializes in analysing and resolving cases of fraud in the crypto sector. With an experienced team of experts, CryptoTracing helps to identify suspicious transactions, trace the movements of cryptocurrencies and, if necessary, uncover connections to fraudulent wallets or networks.

Those affected can contact CryptoTracing for an initial assessment and to discuss possible legal action. CryptoTracing works closely with specialized lawyers and authorities to maximize the chances of tracing the funds. In addition, the platform helps those affected to improve their digital security measures and minimize future risks.

Contacting CryptoTracing is the first step to professional assistance and can make the difference between recovering part of your lost investment or not. Tell us about your case in the contact form and we will contact you with a free initial assessment.