Spanish police have arrested six individuals involved in an elaborate AI-powered cryptocurrency investment scam that targeted victims worldwide. The police operation, codenamed “COINBLACK – WENDMINE,” was launched after a victim filed a complaint two years ago. The operation led to the seizure of 100,000 Euros, mobile phones, computers, hard drives, firearms, and documents. The group’s operation was complex, involving multiple shell companies created to launder the crime proceeds and the leader using over 50 distinct aliases.
The scammers used AI tools to create deepfake advertisements featuring well-known public figures promoting fake investment opportunities. Victims were selected based on their online profiles, and algorithms identified those most likely to be targeted. Once identified, the criminals lured victims with promises of lucrative returns, initially showing them false profits on fake platforms. The use of deepfake technology made these ads appear highly convincing, boosting the victims’ trust in the investments.
The scam progressed in multiple stages. Initially, victims were presented with large returns and pressured to invest further. However, at a later stage, the scammers claimed the victims’ investments had been blocked and could only be recovered by paying substantial fees. In the final phase, the criminals posed as Europol agents or UK lawyers, claiming that the funds had been recovered and demanding payments for local taxes before the victims could access their money.
The police have issued a warning to the public about these scams and highlighted the growing use of AI technology to deceive people. They stress the importance of verifying the legitimacy of investment platforms and being cautious of guarantees of high returns. Red flags include pressure to invest, unexpected balance “blocks,” and demands for additional taxes or fees. As AI-generated deepfake videos become more realistic, people must remain vigilant against such scams, especially when well-known figures are used to promote fraudulent platforms.
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