Australia's financial regulator, ASIC, has dismantled over 600 crypto scams in the past year, highlighting the evolving use of AI by fraudsters.
Since July 2023, ASIC has taken down more than 5,530 fake investment platforms, 1,065 phishing links, and 615 crypto scams. Deputy Chair Sarah Court expressed concern over AI-generated deepfakes, which make it harder to detect fraud.
On average, 20 scam websites are removed daily, contributing to $1.3 billion in investment scam losses for Australians in 2023. Scammers often use fake endorsements from celebrities like Chris Hemsworth and Elon Musk to attract victims with promises of low investment and high returns.
AI is frequently used in scams, with cases of AI-generated voices mimicking Elon Musk to promote schemes. For instance, over 35 YouTube channels broadcasted a fake Musk voice in June.
ASIC also flagged Dexa Trade Markets, a fraudulent firm falsely claiming international regulation. The firm lacks the necessary licenses to operate in Australia.
AI could also help combat scams. SingularityNET CEO Ben Goertze suggested AI could analyze data to summarize crypto entities’ reputations, providing early warnings to potential investors.
The ACCC reported that over half of crypto ads on Facebook are scams or policy violations. Meta, Facebook’s parent company, disputed this, stating the data is outdated and that they have improved their ad monitoring.
On September 9, Singapore’s Deputy Prime Minister Gan Kim Yong announced that an investigation is underway into seven individuals suspected of illegal trading of Worldcoin accounts and tokens.
TRON, Tether, and TRM Labs have launched the T3 Financial Crime Unit (T3 FCU), a new initiative designed to tackle financial crime in the cryptocurrency sector.
According to the FBI, crypto fraud cases surged by 45% last year, with losses totaling $5.6 billion.
Nick Drakon has stepped down as CEO of Revelo Intel, a crypto research and education platform, after revealing a shocking ordeal.