Spanish police arrest six over $20M AI scam

Spanish authorities have arrested six individuals involved in a sophisticated AI-powered investment scam that defrauded over 208 victims worldwide of more than $20 million.

The scammers used advanced AI tools to create deepfake ads featuring well-known personalities, promising high returns on cryptocurrency investments with zero risk.

The scam involved multiple phases, starting with victims being lured into investing through manipulated ads and fake financial advice.

Once victims realised they could not withdraw their funds, the scammers would contact them again, posing as investment managers claiming the funds were frozen and could be recovered for a fee.

In a third phase, the scammers posed as Europol agents or UK lawyers, offering to return the stolen funds if victims paid local taxes.

This multi-layered approach allowed the scammers to swindle victims up to three times.

Spanish police noted that victims were not randomly selected but were targeted based on algorithms matching their profiles to the scammers' criteria.

The operation involved creating fake companies to launder stolen funds, with the leader using over 50 different identities.

The arrests highlight the growing threat of AI-enhanced scams, which are becoming more scalable and affordable for cybercriminals.

Blockchain analytics firm Chainalysis has warned about the increasing use of generative AI in scams.

Spanish authorities seized numerous devices and documents during the raids, and several suspects have been identified in other countries.