AI Deepfake Scam Steals $4M Using Crypto Influencer’s Identity

The Wolf Of All Streets podcast host Scott Melker has claimed his name and face are being used by scammers, with at least one victim having already lost $4 million dollars in digital assets to an artificial intelligence scam. On his X (Twitter), the popular industry representative said he was contacted by a private investigator. He said his client had been victimized by fraudsters from Nigeria who used Melker’s name and picture as bait. How cryptocurrencies are being stolen today According to Melker, scammers have already fooled several people. They sent the victim a fake driver’s license to confirm that it was supposedly him, and used his Twitter avatar as a photo. This way, the user thought that he was actually contacted by a famous representative of the crypto industry, after which it was easier to ”process” him. The fake ID was created with the help of artificial intelligence. In addition, a fake but believable email was used. Scammers are conducting video calls on Zoom using artificial intelligence, and according to Melker, they look very believable. They also spoofed the accounts of his wife and children to add credibility to the fictitious persona. A crypto trader with the nickname Nebraskan Gooner noted that the fake can be easily recognized with a simple Google search, pointing out minor inconsistencies in the address and date format. He added that despite the high level of such operations, this particular attempt was extremely poorly executed. Alas, AI-driven fraud in digital assets continues to rapidly gain momentum. In March 2025, analysts at the California Department of Justice reported the discovery of seven new types of fraud schemes that utilized artificial intelligence. In February, Chainalysis noted that 2025 will be an important milestone for scammers using the tool. The fact is that new technologies make scams more scalable and accessible, that is, they allow scammers to make more attempts to steal. Microsoft experts came to a similar conclusion in a recent report. According to sources , artificial intelligence is able to analyze and collect data from public sources, helping hackers build detailed personality profiles and create plausible scenarios for social engineering. Melker himself recognized that the cybersecurity situation in crypto will only get worse over time. Therefore, users of digital assets need to be extremely careful to recognize artificial intelligence when interacting with someone online. Ideally, you should store most of your own coin holdings with a hardware wallet. It’s also important to ignore any incoming messages on the topic of crypto, as they usually don’t lead to anything good. The last mandatory point is not to click on links sent by strangers or old acquaintances. Losses from crypto scams Analysts at the U.S. FBI’s Internet Crime Complaint Center (IC3) reported that Americans aged 60 and older will suffer the most financial losses from cryptocurrency fraud in 2024. According to the IC3 report, there were 33,369 complaints from this age group, while the total loss amounted to $2.84 billion. The next largest group of victims was people between the ages of 40 and 49, who lost a total of $1.46 billion. IC3 also estimates losses from fraudulent investment schemes at $5.8 billion – a 47 percent increase from 2023. In addition, about $247 million was lost due to crypto-mat-related fraud. In total, IC3 received 149,686 crypto-related complaints in 2024, with total losses reaching $9.3 billion. This is a 66 percent increase from the previous year. Based on 859,532 complaints, digital asset-related fraud accounted for a significant portion of the $16.6 billion in total internet crime losses recorded by IC3 in 2024. This represents a 33 percent increase from the previous year. The average loss to victims was $19,372. The most complaints came from California, Texas and Florida. FBI Director Kash Patel commented on the statistics. Here is his comment. The Internet Crime Complaint Center, which is celebrating its 25th anniversary this year, can only be successful to the extent that it receives referrals. That is why it is critical that the public immediately report suspicious cybercrime activity to the FBI. The FBI has issued warnings to help people avoid cryptocurrency scams in 2024. In September, the agency said North Korean hackers are actively targeting employees of Web3 companies in an attempt to steal funds while using sophisticated social engineering techniques to gain access to corporate finances. Also in April 2024, the FBI warned Americans against using unlicensed payment services in crypto, recommending that companies be vetted using an official government tool before engaging. The bottom line The story of a well-known representative of the blockchain industry shows that even experienced cryptocurrency investors are not immune to traps. With the growing technological threat, caution remains the user’s main weapon. Therefore, it is safer to ignore any offer that tries to seem like a lucrative opportunity to earn money.

Source: Coinpaper