AI deepfakes used in cryptocurrency scams and explicit content
Criminals are using AI deepfake tools to impersonate celebrities including Elon Musk in fraud schemes and to create non-consensual explicit content. Estimates suggest AI-generated fraud causes over $12 billion in losses annually in the US, with deepfake technology widely exploited to target women and public figures globally.
What happened
Fraudsters used AI deepfake technology to impersonate Elon Musk in cryptocurrency scams targeting US citizens. Heidi Swan, a 62-year-old healthcare worker, invested over $10,000 after seeing what appeared to be promotional videos of Musk on Facebook and TikTok featuring a cryptocurrency investment opportunity.
Deepfake technology is being misused globally to create explicit content, with 96 percent of deepfake videos circulating online reported to be pornographic, primarily targeting women. In Pakistan, there has been a rise in creation and circulation of fake explicit and blasphemous videos targeting celebrities and high-profile individuals.
Reported impact
Deloitte estimates that AI-generated content contributed to over $12 billion in fraud losses in the US last year, with potential growth to $40 billion by 2027. Victims in Pakistan reportedly face public outrage, severe emotional distress, and in extreme cases, physical violence.
The Federal Trade Commission and Better Business Bureau have issued warnings about deepfake scams exploiting celebrities due to their public visibility and wealth.
Index analysis
Deepfake technology has become increasingly accessible, with tools requiring only a single image to create convincing synthetic video. According to reports, a 60-second fake video can be generated with minimal technical expertise in approximately 25 minutes.
Deepfake creation communities had grown to over 609,000 members by 2023, contributing to the proliferation of harmful content. Tools such as DeepNude have gained significant traction, enabling easier creation of fraudulent and explicit material.
Governance controls
Law enforcement agencies and legal experts, particularly in Pakistan, have raised alarm about the escalating misuse of deepfake content. Experts have called for immediate legal reforms, public awareness campaigns, and technological innovation to curb AI-powered misuse.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.