Over 350,000 Fooled by AI-Generated Deepfake of Apple CEO in Cryptocurrency Scam

Over 350,000 Fooled by AI-Generated Deepfake of Apple CEO in Cryptocurrency Scam

More than 350,000 people were deceived by a deepfake video featuring Apple CEO Tim Cook, which was used to promote a cryptocurrency scam. The video, generated using artificial intelligence, misled viewers into participating in the fraudulent scheme.

The incident occurred on September 9, a significant day for Apple as the world eagerly anticipated the “Glowtime” event, unveiling the new iPhone. Taking advantage of the hype, scammers orchestrated several live streams promoting a common “double-your-crypto” scam.

One such stream, now removed, reached over 355,000 viewers at its peak. The scammers repurposed an old interview of Tim Cook, altering it with AI technology to present a fake message encouraging people to send cryptocurrencies like Bitcoin and Ethereum to a wallet they controlled.

During the broadcast, an AI-generated voice imitating Cook claimed it was an “ideal opportunity for beginners to get involved and learn about cryptocurrency.” To further deceive viewers, the stream displayed a QR code leading to a malicious website. This site, still active at the time of writing, contained wallet addresses for various cryptocurrencies, including BTC, ETH, DOGE, and USDT, as well as a fake transaction history to suggest that users were actively transferring funds.

Another live stream appeared on a verified YouTube account named “Apple US,” falsely impersonating the official Apple channel. Other streams originated from accounts with no connection to the tech industry, adding to the confusion.

As more users began reporting these fraudulent streams, YouTube support responded, urging people to flag the videos using their reporting tools. The streams have since been taken down.

Unfortunately, this is not an isolated case. Scammers have frequently exploited YouTube for deepfake frauds. A similar incident occurred earlier this year when Tesla and SpaceX CEO Elon Musk was impersonated during the April 8 solar eclipse, as scammers promoted a comparable scheme through multiple rebranded YouTube channels mimicking SpaceX.

While YouTube has yet to officially address the growing issue of deepfake misuse, the platform previously faced legal challenges. In 2020, Apple co-founder Steve Wozniak, alongside 17 other victims, sued YouTube for failing to remove scams that used their likenesses to promote fake Bitcoin giveaways.

The rise in deepfake scams is becoming increasingly alarming. A report from Bitget in June 2024 highlighted a 245% increase in such scams this year alone, resulting in approximately $80 billion in financial losses. This surge has prompted regulators to take action, with a proposed bill aiming to mandate AI developers, such as OpenAI, to provide clear origin information for all AI-generated content, enhancing transparency and accountability.