Crypto Scam Alert: Spanish Police Bust $21M AI-Driven Fraud Ring

Key Insights

• Spanish law enforcement agents have successfully busted a major crypto scam unit.
• This scam unit used artificial intelligence and deepfake videos to trick over 200 victims and steal more than €19 million ($21.5 million).
• So far, 6 people have been arrested, along with a ringleader, a man between the ages of 34 and 57 who was caught while boarding a plane to Dubai.
• It is unclear whether the stolen money can be recovered, but the cybercrime prosecutor’s office in Granada continues to trace more leads.

According to recent reports, Spanish law enforcement agents have successfully busted a major crypto scam unit.

Said unit reportedly used artificial intelligence and deepfake videos to trick over 200 victims and steal more than €19 million ($21.5 million).

The fraud is said to have spanned at least two years and relied heavily on everything from high-tech, fake celebrity endorsements, social engineering, and other tactics to lure victims in.

Here are some more details to keep in mind.

How the Crypto Scam Started?

The investigation started in Granada when a local man reported losing around €624,000 (roughly $700,000) to what he believed to be a crypto investment opportunity.

This complaint triggered a two-year investigation from Spain’s National Police and Civil Guard, eventually revealing this massive scam ring that operated across the country.

The deeper investigators dug in, the more they realized that this was far from being an isolated incident.

Overall, around 208 individuals had been hit by these unnamed scammers, who promised them massive returns on crypto investments.

AI and Deepfakes Played a Huge Role

The interesting thing about this scam ring is how well it used advanced technology.

The criminals involved used AI to create hyper-realistic video adverts that featured popular celebrities.

These celebrities endorsed one or the other “revolutionary” investment platform and urged investors to get in on the action.

These videos, while being fake, got the job done. They convinced victims to invest in what appeared to be a credible scheme.

“The National Police and the Civil Guard are hereby reminding citizens of how important caution is, especially with investment offers that promise high profits and no risks,” Spanish authorities said in a public warning.

The group in question didn’t just rely on flashy videos.

According to investigators, the scammers even used advanced algorithms to identify their ideal targets.

These "targets" included people with a strong online presence and an interest in finance or technology.

Once a victim gets on the scammers' radar, they are shown tailored ads on social media platforms.

These ads often had links to professional-looking landing pages that looked similar to legitimate investment services.

The scammers would then pose as financial advisors (or even romantic partners) and contact their victims to wring the money out of them.

Lies and Fake Identities

The group performed their operations with more than 50 fake IDs, along with more shell companies to hide their tracks.

They routed transactions through international banks, making it difficult to trace the money and get caught.

According to reports, the ringleader, a man between the ages of 34 and 57, was caught just as he attempted to board a plane to Dubai.

Authorities also performed coordinated raids in Granada, Alicante, and other Spanish cities.

They seized computers, mobile phones, fake documents, and other major pieces of evidence.

As it stands, six individuals have been arrested so far, under charges of fraud, money laundering, and falsifying official documents, among other things.

So far, it is unclear whether the stolen money can be recovered.

However, the cybercrime prosecutor’s office in Granada continues to trace the stolen funds and attempt to arrest more suspects.

Finally, it is important to note that scams are growing on a global scale, from California to Europe.

Crypto-related fraud is becoming more common with California authorities shutting down 26 crypto scam websites, which siphoned off $4.6 million in losses only last year.

Investors within the crypto space must remember that scams in this industry are relatively easier to perform compared to traditional finance.

If an unsolicited offer of investment (crypto-related or not) appears too good to be true, it probably is.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.