Pensioner loses NZD 224,000 to deepfake Bitcoin scam

A New Zealand pensioner lost NZD 224,000 (approximately USD 140,000) in a deepfake scam featuring Prime Minister Christopher Luxon. What happened The fraudsters used advanced AI technology to create a realistic-looking video advertisement of Luxon encouraging pesnioners to invest in Bitcoin , which led Jill Creasy, 72, to believe she was engaging in legitimate financial transactions. After responding to the ad, Creasy was contacted by a Greek national calling himself Adam Manolas who claimed to be a Terma Group investment adviser based in Manchester, UK. Manolas explained how the investment worked then sent Creasy software called AnyDesk, which gave him remote access to her computer. Using her email, he set up accounts under her name at crypto exchange platforms Easy Crypto and Binance, before instructing her to log in to her TSB internet banking account. She then watched as he transferred several payments over the next 26 days to purchase Bitcoin from Easy Crypto. Most of the payments were for NZD 20,000 - her daily transfer limit with TSB. Creasy’s Bitcoin was supposed to be deposited in her Binance wallet, but she later learned it was sent to another account controlled by the scammers. Why it happened The rise of deepfake technology has made it increasingly difficult for individuals to discern between genuine and fraudulent communications. In this case, the pensioner was likely unaware of the nature and harms associated with deepfake scams, which have become more prevalent as AI tools become more accessible and sophisticated. Cybercriminals are leveraging these technologies to manipulate audio and video content, making it appear as though trusted figures are involved in financial dealings. This manipulation capitalises on human trust and the urgency often associated with financial transactions. What it means This incident underlines the need for increased awareness and education regarding deepfake technology and its potential for fraud. It highlights vulnerabilities in personal security practices, particularly among older adults who may be less familiar with digital threats. Financial institutions and organisations are being urged to implement stronger verification processes, such as multi-factor authentication and employee training on how to recognise deepfake scams. System 🤖 Unknown D eveloper: Country: New Zeal and Sector: Banking/financial services Purpose: Def raud Technology: De epfake Issue: Authenticity/integrity; Security

Date it happened

2024-10-01

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