Authorities in Spain have apprehended six individuals involved in a global investment scam utilizing artificial intelligence, which has defrauded over $20 million from at least 208 victims.
These scammers would deceive their targets multiple times. After initially defrauding victims through the investment scheme, they would reach out twice more, pretending to be investment managers, and later, as representatives from law enforcement to assist in recovering the lost funds for a fee, as reported by Spanish police on April 7.
The fraudsters employed deepfake advertisements featuring “national figures,” promising substantial returns on cryptocurrency investments. They would occasionally impersonate financial advisors or even feign romantic interest to attract potential victims.
Experts have issued warnings about an uptick in AI-enhanced scams. A report from a blockchain analytics firm indicated that generative AI is making it easier and cheaper for criminals to execute these scams.
“Victims were not chosen at random; algorithms were used to identify individuals whose profiles met the criteria sought by the cybercriminals,” Spanish police stated. “After selecting their targets, they launched advertising campaigns on various websites or social media platforms, promoting cryptocurrency investments with promises of high returns and no risk of loss—investments that, unsurprisingly, turned out to be fraudulent.”
Many victims realized they had been scammed when attempts to withdraw their funds failed. However, the deception did not stop there.
### Follow-Up Scams Target Victims Again
The cybercriminals would contact their targets once again, this time posing as investment managers. They claimed that the stolen funds were frozen and could be recovered for a fee. “Desperate to get their money back, victims made the deposit, unaware that they were falling victim to another scam,” Spanish police explained.
The scammers then reached out a third time, impersonating agents from Europol or lawyers from the United Kingdom, offering to return the stolen money if the victims paid the corresponding taxes in the jurisdiction where the funds were held.
Spanish authorities arrested six members of the syndicate, charging them with fraud, money laundering, and the fabrication of documents within a criminal organization. During a raid on the alleged leader’s premises, law enforcement confiscated numerous mobile phones, computers, hard drives, a replica weapon, and extensive documentation.
Several associates linked to the scheme have also been identified in other nations, and the group reportedly created numerous fake companies to launder the stolen money. “Additionally, the organization’s members utilized various false identities. For instance, the leader was found to have used over 50 different aliases,” reported Spanish police.