News
Elon Musk Deepfake Scam Used to Promote Fraudulent Cryptocurrency Trading Platform, Hong Kong Financial Regulator Warns
The Securities and Futures Commission (SFC) in Hong Kong has issued a warning about a fraudulent cryptocurrency trading platform called “Quantum AI”, which uses deepfakes of Elon Musk to attract victims.
This scam, while not new, highlights the growing use of artificial intelligence (AI) to commit fraud, particularly in Asia.
SFC Public Notice and Immediate Actions
On May 8, the SFC highlighted the deceptive nature of quantum AI, which promises “too good to be true” returns, according to the South China Morning Post reported.
The regulator asked the Hong Kong police force to block access to related websites and social media pages. As of this week, the associated domains are inaccessible and the Facebook groups promoting the scam have been removed.
Deepfake fraud on the rise in Asia
Hong Kong has witnessed numerous incidents of deepfake-related fraud, prompting government vigilance.
According to the identity verification platform SumLast year, deepfake incidents in the Asia-Pacific region increased by 1,530%, with Vietnam and Japan recording the highest number of attacks.
Penny ChaiSumsub’s vice president of business development in APAC, said: “Thanks to the rise of digital financial transactions in the emerging Asian market, there is a larger pool of deepfake targets. As a high volume of instant cross-border transactions take place in the region, especially in Hong Kong, deepfake fraudsters can exploit the complexity and volume of financial transactions to carry out fraudulent activities.”
History and evolution of the quantum artificial intelligence scam
The quantum AI scam has been around for at least a year, evolving with various iterations to target different groups.
One notable example involved a deepfake video on Facebook featuring Musk and Jack Maco-founder of Holding company of the Alibaba group.
This video was debunked by PolitiFact and traced back to a global artificial intelligence conference held in Shanghai in 2019, where Musk and Ma appeared together.
Another variation involved editing footage of Elon Musk’s appearance on the Fox News show hosted by Tucker Carlsonaccording to Reuters Fact Check.
Address the growing threat
Scam websites often use cheap hosting providers and flexible back-end technologies like WordPress.
One of the top search results for Quantum AI deceptively advises users to deposit a minimum of $250, warning them to “only invest what you are comfortable losing completely.”
The alarming increase in AI-related fraud, particularly through deepfakes, highlights the need for greater vigilance and regulatory measures in the digital financial landscape.
The evolving nature of such scams requires continuous monitoring and public awareness.
The implications of artificial intelligence and digital fraud will be a key topic of Benzinga The future of digital assets event on November 19th.
Read next: BlackRock, Fidelity Lead Bitcoin ETF Surge to $257M, As Analysis Predicts Return to $74,000
Image: Shutterstock
ENTER TO WIN $500 IN STOCKS OR CRYPTO
Enter your email and you’ll also receive Benzinga’s latest morning update AND a free $30 gift card and more!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.