The number of scammers who are targeting naïve and beginner investors appears to rise concurrently with the surging interest in artificial intelligence (AI).
In a majorly disturbing trend, some of the crypto scammers are now integrating the two, utilizing AI to create some phony CEOs and other executives in a bid to dupe and swindle unsuspecting victims.
On April 20, the California Department of Financial Protection and Innovation (DFPI) charged up to five financial services companies with exploiting various investor interests in cryptos and digital assets by capitalizing on the buzz that surrounds AI.
Hackers Are Using AI to Create Nonexistent CEOs
Harvest Keeper and Maxpread Technologies, two of the firms, are accused of misrepresenting their CEOs by using an actor for one and a computer-generated avatar by the name of “Gary” for the other.
Based on the DFPI, the firm touted its ‘profitability’ via a promotional YouTube video utilizing an avatar designed on Synthesia.io and programmed to read a screenplay.
Scammers like to deceive investors by using phony CEOs, sham algorithms, & Ponzi schemes. Today, we've issued desist and refrain 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 utilizes artificial intelligence to develop lifelike video content. This platform lets users create quality video content by just typing out the script or uploading a voiceover and then choosing an AI-generated presenter or avatar to deliver some content onscreen.
Synthesia.io’s AI technology utilizes deep learning algorithms to develop realistic animations and speech, letting users generate top-quality video content efficiently and rapidly.
On April 8, a video with an address allegedly given by CEO ‘Michael Vanes’ was uploaded to the official Maxpread YouTube channel.
Utilizing The Latest Technology To Dupe Users
The agency insists that this figure is inexistent and that Jan Gregory, previously the firm’s chief marketing officer and corporate brand manager, is Maxpread’s true CEO.
One DFPI representative, Elizabeth Smith, told Forbes in an email statement that the agency’s enforcement team had tracked the avatar’s origins to the online 3D modeling and animation platform Synthesia.io, where it was given the name ‘Gary.’
The purported avatar, who seems to be a middle-aged bald man with a salt-and-pepper beard, rambles on and on in a synthetic voice for the entire seven minutes of the video.
On the contrary, Harvest Keeper allegedly employed a human actor to perform the role of CEO, despite the firm insisting on the use of AI to boost crypto trading profits, it seems the firm instead decided to rely on a human boss.
In an official statement, DFPI Commissioner Clothilde Hewlett stated:
“Scammers are taking advantage of the recent buzz around artificial intelligence to entice investors into bogus schemes.”
Hewlett insisted they will keep aggressively going after the crypto scammers so that Californians and their investments are safe.
Both of these organizations have been conspicuously silent in the wake of these accusations. The episode indicates the requirement for regulatory monitoring and caution against the misuse of artificial intelligence in the financial industry.
Since the crypto Scammers rely now on advanced technology to fabricate their identities and manipulate data, they are getting much harder to spot.
As a result, investors have to be extra vigilant and do their due diligence before making any investment in any crypto project or startup, regardless of how promising it might appear at first glance.
