Here's how Deepfake Tech Allowed Scammers to Exploit Elon Musk's Image and Credibility
Elon Musk is probably one of the most influential business leaders across the globe with admirers in the tech world as well as superfans spread across every age group and social background. His sway is such that he can turn a meme coin into a serious virtual asset, and has also been known to impact stock prices with a single tweet, something that got him in trouble when he made claims about taking Tesla private. Naturally, Musk is among celebs and global leaders whose image is being exploited using deepfake technology that allows fraudsters to spin a web of credibility and trap netizens. A recently busted fraudulent crypto giveaway that used Musk's deepfake video is one such scam. Those behind it managed to raise a staggering $165,000 in donations before the scam was uncovered, as per Crypto News.
The fake Elon Musk YouTube scam
The orchestrated scam involved the creation of deepfake versions of Elon Musk, which were featured in live YouTube streams. These streams, claiming affiliation with SpaceX, promised users a chance to participate in a giveaway. The scammers leveraged the trust associated with Elon Musk and SpaceX to deceive unsuspecting users. The live YouTube streams, which have since been removed, featured a QR code directing users to a website.
Deepfake technology used in scam
Deepfake technology, known for its ability to create hyper-realistic fake videos, played a pivotal role in this elaborate deception. The scammers used deepfake versions of Elon Musk to make the YouTube streams appear authentic, further exploiting the popularity and influence of the real Elon Musk.
Modus operandi
The scammers' tactics were cunning and well-coordinated. Users were enticed to access a website by scanning the QR code displayed in the YouTube streams. Once on the website, participants were instructed to send cryptocurrency to specified contribution addresses and await transaction processing. In return, they were promised a crypto reimbursement to their wallets along with a 200% bonus. The scammers went to great lengths to make their scheme convincing, which includes creating a fake SpaceX YouTube channel with 180,000 subscribers.
A total of 2.48 BTC, equivalent to approximately $91,566 at the current exchange rate, was collected using this ploy, and complex transactions were used by the scammers to obfuscate the flow of funds.
Rising trends in crypto scams: Insights from CertiK
This exposed scam is just one instance in a series of fraudulent activities plaguing the cryptocurrency space. According to blockchain analysis firm CertiK, over $32.2 million was lost to crypto scams and security incidents in October 2023 alone. The leading causes identified by CertiK include vulnerabilities, exit scams, and flash loan manipulations. In November 2023, the total amount stolen during hacks surged to $290 million.
Vigilance in the crypto space
The Fake Elon Musk YouTube streams leading to a $165k crypto scam serve as a stark reminder of the challenges users face in the cryptocurrency landscape. As technology advances, so do the methods employed by scammers. Deepfake technology, in particular, poses a new level of risk, as demonstrated in this elaborate scheme. Users are urged to exercise utmost vigilance, verify the authenticity of online content, and be wary of unsolicited investment opportunities. Collaborative efforts between industry players, as seen in the SpaceX and BitOK partnership, are crucial in exposing and combating such scams.