A new scam targets
online investors by using fake news articles and deepfake videos of celebrities
and public figures, including Elon Musk, to promote fraudulent online trading
platforms.
The Australian
National Anti-Scam Centre (NASC) has issued a warning to consumers to be wary
of these scams, especially on social media, where they often appear as
sponsored posts or ads.
According
to the NASC, Australians lost more than $8 million to online trading platform
scams last year, with 400 reports made to Scamwatch.
The
scammers create fake news articles and deepfake videos, which are manipulated
to make it seem like the person is speaking, to convince people that
celebrities and well-known public figures are making huge sums of money from
online trading platforms, such as Quantum AI, Immediate Edge, and Quantum Trade
Wave.
The fake
endorsements claim that the online trading platforms use artificial
intelligence or other emerging technologies, such as quantum computing, to
generate high returns for investors. However, these claims are false and the
online trading platforms are not regulated or licensed by any authority.
“We are
urging Australians to take their time and do their research before taking up an
investment opportunity – particularly those seen on social media,” said Catriona
Lowe, the Deputy Chairwoman of ACCC.
‘Quantum AI’ and ‘Immediate Edge’ are some of the most prolific online investment trading platform #scams. Find out how ASIC, as part of the National Anti-Scam Centre, is working to disrupt investment scams https://t.co/fcgysXImoR@acccgovau
— ASIC Media (@asicmedia) March 1, 2024
The
scammers entice victims to sign up for the online trading platforms by asking
for a small investment of around $250 via credit card. They then provide the
victims with an online dashboard or a third-party app to show them their
supposed profits.
The
scammers then persuade the victims to invest more money, sometimes allowing
them to withdraw a small amount to build trust. But when the victims try to
withdraw their funds, the scammers ask for more fees or taxes, or lock them out
of their accounts.
“We know of
an Australian man who lost $80,000 in cryptocurrency after seeing a deepfake
Elon Musk video interview on social media, clicking the link and registering
his details through an online form,” Lowe added.
this deepfake scam named Quantum AI with AI generated video & audio of @elonmusk still spreading on youtube and possibly elsewhere. Please be alert and please release warnings often enough @elonmusk and prevent people from these money scams pic.twitter.com/rsInZnhdJS
— Selin Oner Kula (@slnoner) November 18, 2023
Finfluencers over Common
Sense
The
reliance of retail investors on financial influencers, or finfluencers, over
their own market research is becoming a concern for regulators worldwide. This
trend, accentuated by the rise of deepfakes, has seen authorities from various
countries raising alarms.
Over a year
ago, the Cyprus Securities and Exchange Commission revealed a study showing
that one in three investors would trust a social media authority over someone
from their close family. In France, this trust level exceeds 40%, marking the
highest, while in Germany, it’s the lowest, with only one in five retail
investors believing advice from platforms like TikTok, YouTube, and Instagram.
The UK’s
Financial Conduct Authority announced in July plans to start regulating the
finfluencer industry and take a stronger stance against illegal advertisements
on social media, including deepfakes.
Meanwhile, this week ASIC reported that it had received a bankruptcy order against Tyson Scholz, a
social media finfluencer known as “ASX Wolf.” Scholz faced bankruptcy after
failing to pay the regulator AU$456,296.64 as ordered by the court.
Investment Scam Fusion
Cell
The NASC’s
investment scam fusion cell, co-led by the ACCC and ASIC, has been working to
disrupt deepfake scams by referring them to social media platforms for removal and
blocking payments to them.
The NASC
advises consumers to “stop, think, and protect” themselves before investing in
any online trading platforms, especially those seen on social media.
“The ACCC
and ASIC will continue to work together as part of the National Anti-Scam
Centre’s efforts to stop scammers from harming Australians,” Lowe concluded.
Consumers
should check ASIC’s investor alert list and professional register to see if the
online trading platform is legitimate and authorized. They should also do an
internet search to see any warnings or complaints about the online trading
platform or the celebrity endorsement.
Consumers
who have been scammed or experienced cybercrime should immediately contact
their bank and report it to Scamwatch. They can seek emotional support
from Lifeline or Beyond Blue if needed.
A new scam targets
online investors by using fake news articles and deepfake videos of celebrities
and public figures, including Elon Musk, to promote fraudulent online trading
platforms.
The Australian
National Anti-Scam Centre (NASC) has issued a warning to consumers to be wary
of these scams, especially on social media, where they often appear as
sponsored posts or ads.
According
to the NASC, Australians lost more than $8 million to online trading platform
scams last year, with 400 reports made to Scamwatch.
The
scammers create fake news articles and deepfake videos, which are manipulated
to make it seem like the person is speaking, to convince people that
celebrities and well-known public figures are making huge sums of money from
online trading platforms, such as Quantum AI, Immediate Edge, and Quantum Trade
Wave.
The fake
endorsements claim that the online trading platforms use artificial
intelligence or other emerging technologies, such as quantum computing, to
generate high returns for investors. However, these claims are false and the
online trading platforms are not regulated or licensed by any authority.
“We are
urging Australians to take their time and do their research before taking up an
investment opportunity – particularly those seen on social media,” said Catriona
Lowe, the Deputy Chairwoman of ACCC.
‘Quantum AI’ and ‘Immediate Edge’ are some of the most prolific online investment trading platform #scams. Find out how ASIC, as part of the National Anti-Scam Centre, is working to disrupt investment scams https://t.co/fcgysXImoR@acccgovau
— ASIC Media (@asicmedia) March 1, 2024
The
scammers entice victims to sign up for the online trading platforms by asking
for a small investment of around $250 via credit card. They then provide the
victims with an online dashboard or a third-party app to show them their
supposed profits.
The
scammers then persuade the victims to invest more money, sometimes allowing
them to withdraw a small amount to build trust. But when the victims try to
withdraw their funds, the scammers ask for more fees or taxes, or lock them out
of their accounts.
“We know of
an Australian man who lost $80,000 in cryptocurrency after seeing a deepfake
Elon Musk video interview on social media, clicking the link and registering
his details through an online form,” Lowe added.
this deepfake scam named Quantum AI with AI generated video & audio of @elonmusk still spreading on youtube and possibly elsewhere. Please be alert and please release warnings often enough @elonmusk and prevent people from these money scams pic.twitter.com/rsInZnhdJS
— Selin Oner Kula (@slnoner) November 18, 2023
Finfluencers over Common
Sense
The
reliance of retail investors on financial influencers, or finfluencers, over
their own market research is becoming a concern for regulators worldwide. This
trend, accentuated by the rise of deepfakes, has seen authorities from various
countries raising alarms.
Over a year
ago, the Cyprus Securities and Exchange Commission revealed a study showing
that one in three investors would trust a social media authority over someone
from their close family. In France, this trust level exceeds 40%, marking the
highest, while in Germany, it’s the lowest, with only one in five retail
investors believing advice from platforms like TikTok, YouTube, and Instagram.
The UK’s
Financial Conduct Authority announced in July plans to start regulating the
finfluencer industry and take a stronger stance against illegal advertisements
on social media, including deepfakes.
Meanwhile, this week ASIC reported that it had received a bankruptcy order against Tyson Scholz, a
social media finfluencer known as “ASX Wolf.” Scholz faced bankruptcy after
failing to pay the regulator AU$456,296.64 as ordered by the court.
Investment Scam Fusion
Cell
The NASC’s
investment scam fusion cell, co-led by the ACCC and ASIC, has been working to
disrupt deepfake scams by referring them to social media platforms for removal and
blocking payments to them.
The NASC
advises consumers to “stop, think, and protect” themselves before investing in
any online trading platforms, especially those seen on social media.
“The ACCC
and ASIC will continue to work together as part of the National Anti-Scam
Centre’s efforts to stop scammers from harming Australians,” Lowe concluded.
Consumers
should check ASIC’s investor alert list and professional register to see if the
online trading platform is legitimate and authorized. They should also do an
internet search to see any warnings or complaints about the online trading
platform or the celebrity endorsement.
Consumers
who have been scammed or experienced cybercrime should immediately contact
their bank and report it to Scamwatch. They can seek emotional support
from Lifeline or Beyond Blue if needed.
