AI-generated deepfake videos used in coordinated stock pump-and-dump scheme targeting Israeli investors
Reportedly, Israeli investors fell victim to a coordinated stock market scam launched in April that used AI-generated deepfake videos impersonating public figures and institutions to promote investment in a NASDAQ-listed stock. Fraudsters spread recommendations through social media platforms using paid promotion tools and maintained contact with victims through phony financial expert personas and WhatsApp groups.
What happened
A coordinated stock market scam targeted Israeli investors beginning in April, using AI-generated deepfake videos to impersonate prominent public figures and trusted financial institutions. Fraudsters created Instagram pages featuring synthetic videos, including one showing Bank of Israel Governor Amir Yaron endorsing a fake financial product, and impersonated figures such as Prime Minister Benjamin Netanyahu, Eyal Yaron, Noa Kirel, Gal Gadot, Elon Musk, and Mark Zuckerberg.
The scheme promoted investment in a real NASDAQ-listed stock, spreading recommendations across Facebook, Instagram, and WhatsApp using the platforms' paid promotion tools. Fraudsters customized deepfake videos for different Israeli demographics with Russian subtitles and timed releases to coincide with current events. Scammers maintained contact with victims through WhatsApp, posing as financial experts and creating phony investor groups.
Reported impact
Israeli investors reportedly lost hundreds of thousands of dollars to the scheme. The actual stock price rose during the campaign, which fraudsters used to demonstrate apparent legitimacy and encourage further investment from victims in multiple countries.
Index analysis
The scheme combined deepfake video technology with social media targeting and coordinated messaging to create what authorities characterize as an example of "the algorithmic scam"---a new category of AI-powered digital fraud. The fraudsters exploited social media platforms' paid promotion tools, which the Israeli Internet Association described as becoming "sophisticated and effective digital fraud machines" when misused by malicious actors.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.