Global Crackdown on Crypto Scams and AI Deepfake Fraud Reveals Sophisticated Criminal Tactics

Global crackdowns target crypto scams and AI deepfake fraud

A week into 2025, police from various jurisdictions have apprehended fraudsters running cryptocurrency-related schemes targeting hundreds of potential victims. On Jan. 5, Vietnamese police arrested four individuals involved in a cryptocurrency mining scam that stole 4 billion Vietnamese dong ($157,300) from more than 200 victims, according to the newspaper, VnExpress. The suspects, led by Tran Minh Quang, allegedly developed a fraudulent crypto-mining website called BitMiner, with a Singapore domain. The group advertised itself as a Dubai-based crypto-mining company and offered unrealistic investment returns. According to the report, the victims were sold dubious crypto-mining packages and related educational materials. Related: Vietnamese police foil $1M crypto scam, protect 300 potential victims The police department of Springfield, Massachusetts, in the United States, recently alerted citizens against an uptick in Bitcoin BTC $98,876 and other cryptocurrency-related scams. While noting that scammers use a variety of techniques, the warning singled out crypto ATM scams: "The scams have many different variations, but one in particular directs a person to a cryptocurrency machine to insert and send money to the scammer. If you receive a phone call with someone demanding a payment in cryptocurrency or Bitcoin, please hang up." In addition to crypto scams, authorities are also actively cracking down on artificial intelligence-related crimes involving deepfakes. On Jan. 5, Hong Kong police arrested a group of 31 scammers -- mostly university students -- who defrauded victims of different countries and stole 34 million Hong Kong dollars ($4.37 million) using AI deepfakes. According to a Radio Television Hong Kong (RTHK) report, the syndicate had been operating for more than a year, and the victims were mainly from outside of Hong Kong, including Taiwan, Singapore, Malaysia and the United States. A translated version of a statement from Fung Pui-kei, superintendent of the Commercial Crime Bureau, read: "They (scammers) also make use of the new technology, like AI face-swapping technology, to [pretend] to be some good-looking ladies and gentlemen to induce potential victims, gain their trust and develop into romance relationships in order to commence the romance scams." Hong Kong authorities raided two locations and seized 10 million Hong Kong dollars worth of cash, handbags and luxury watches. While five criminals were charged with conspiracy to defraud, others were released on bail.

Hong Kong Deepfake Scam Group Caught Pretending to Be Rich Single Women - Decrypt

Hong Kong police have intercepted over HK$34 million (US$3.37 million) in scam proceeds as part of an elaborate operation targeting victims through the use of artificial intelligence. According to a report by the South China Morning Post on Saturday, the investigation also shed light on some of the novel strategies employed by local romance scam operators. Some revolved around pretending to be wealthy single women, with conversational prompts including learning Japanese, playing golf, and tasting red wine worth more than HK$100,000 ($12,850) a bottle, per the report. Strategies such as those were recorded in notebooks seized by local law enforcement when officers arrested 31 people. The arrests were part of a concerted action against a crime syndicate that used AI to generate credible images of attractive women to lure victims into romance and investment scams. Byron Boston, a former Dallas police officer and CEO of Crypto Track, told Decrypt that "the integration of deepfake technology and social engineering scams presents significant challenges for cryptocurrency investigators and law enforcement." He explained that AI-generated images make criminals more convincing and allow them to carry out more elaborate and sophisticated scams. "For example, in November 2022, a deepfake video mimicking FTX founder Sam Bankman-Fried was used in a phishing scheme to target FTX users to attempt to drain their crypto assets," Boston highlighted. He also said social engineering scams are insidious "as they often involve prolonged efforts to build trust with victims." The seized notebooks also revealed that the criminal organization aimed to recruit young people looking to earn money quickly. They attempted to convince their victims they were accomplished women in Taiwan, Singapore, and Malaysia. Boston noted that "while these advanced methods pose considerable hurdles, effective collaboration, and swift action are crucial for combating these criminal activities." Still, such capabilities are not yet prevalent, and "many local law enforcement agencies in the U.S. lack the necessary tools and expertise to trace stolen cryptocurrency or engage in recovery efforts with international exchanges," Boston added.