Deepfake Scams Hijack Apple iPhone Launch with Crypto Fraud as FBI Reports 45% Rise in 2023

The rise of deepfake technology and cryptocurrency scams continues to plague the digital world, as scammers grow bolder in their efforts to deceive users.

In a recent incident, YouTube was flooded with livestreams featuring deepfakes of Apple CEO Tim Cook, coinciding with the company's "Glowtime" event on September 9, where the new iPhone 16 models were unveiled. These fraudulent streams, which appeared on channels mimicking official Apple accounts, urged viewers to send Bitcoin, Ether, Tether, or Dogecoin to a provided address, promising to double the amount sent.

The scam, known as a “double-your-money” scheme, has become a common tactic among fraudsters, but victims never see their funds returned. Some of these deepfake streams garnered hundreds of thousands of views, though many were likely generated by bots to create the illusion of legitimacy.

YouTube’s support team acknowledged the scam in a statement on social media, urging users to report any suspicious videos. The scam streams have since been removed, and the accounts associated with them have been closed.

This incident is part of a broader trend where deepfake scammers target high-profile individuals and major events. In June, for example, Australia’s Seven Network had its YouTube channel hijacked by crypto scammers, who posted videos of a deepfake Elon Musk promoting similar fraudulent schemes. The same month saw another wave of fake Musk videos circulating on YouTube, tied to the launch of SpaceX’s Starship rocket.

These scams reflect a concerning increase in AI-generated content, raising alarm about the broader impact of deepfakes. The World Economic Forum's 2024 “Global Risks Report” also highlighted the dangers posed by AI technologies, including their use in misleading and harmful ways.

At the same time, the United States is grappling with an escalating wave of cryptocurrency fraud. The Federal Bureau of Investigation (FBI) recently released its 2023 report on crypto-related scams, revealing that Americans lost $5.6 billion to cryptocurrency fraud, a staggering 45% increase from 2022. Cryptocurrency-related complaints made up 10% of the total reports received by the FBI, but these scams accounted for nearly half of the total financial losses that year.

The FBI report found that older Americans were especially vulnerable, with individuals over 60 accounting for $1.6 billion of the losses. Investment schemes made up 71% of the fraud, while other scams, such as call center fraud and government impersonation, also contributed to the growing number of victims.

Crypto-related fraud is not just confined to the United States, as complaints were received from over 200 countries. However, the majority of losses occurred domestically, often through confidence schemes that trick victims into investing in bogus opportunities. The FBI warns that scammers typically avoid meeting their victims in person, advising individuals to be cautious of investment offers from people they have not met face-to-face.

In addition to confidence schemes, crypto ATMs and kiosks have become a tool for fraudsters due to their anonymity. The FBI recorded 5,500 cases involving cryptocurrency ATMs in 2023, resulting in losses exceeding $189 million. These kiosks are used for a variety of scams, including romance fraud, extortion, and government impersonation schemes.

The FBI noted that recovering money lost through crypto kiosks is extremely difficult, with the chances of successful recovery being "slim."

As the prevalence of deepfake scams and crypto-related fraud continues to rise, individuals must remain vigilant and informed about these evolving threats. With the rapid advancement of AI technologies and the anonymity of cryptocurrency transactions, these scams are likely to become even more sophisticated, posing greater risks to unsuspecting users.

Deepfake Scams Hijack Apple iPhone Launch with Crypto Fraud as FBI Reports 45% Rise in 2023

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