Social Media Users Losing Money to Deepfake Advertisements on Instagram

Deepfake Investment Scams Flourish on Meta Platforms, Causing Millions in Losses

Social media platforms owned by Meta have become breeding grounds for sophisticated investment scams using AI-generated deepfake videos of prominent financial figures, with fraudsters exploiting Instagram ads and WhatsApp groups to defraud unsuspecting victims.

A recent wave of these scams has targeted users across Canada, the UK, Israel, and Australia, with criminals creating convincing fake videos of banking executives, journalists, and even government officials to lure victims into fraudulent investment schemes.

In Canada, scammers ran Instagram ads under the name “BMO Belski,” deliberately invoking the Bank of Montreal and its chief investment strategist Brian Belski. The ads featured AI-generated deepfake videos of Belski inviting users to join a private WhatsApp investment group. The scheme was designed to create an illusion of legitimacy by associating with a respected financial institution and expert.

The technical sophistication of these operations is notable. In the Canadian case, the fraudsters didn’t even need an Instagram account to run ads. They operated through a Facebook page that had existed since October 2023 under a different name, likely using an aged account to bypass Meta’s moderation systems.

Similar tactics were employed in the UK against Martin Wolf, chief economics commentator for the Financial Times. The journalist discovered deepfake videos of himself circulating in Instagram ads that directed viewers to WhatsApp investment groups. Despite Wolf’s efforts to have the content removed, the Financial Times’ investigation revealed the campaign included at least three different deepfake videos and several manipulated images that appeared in more than 1,700 ads across Facebook and Instagram.

The scale of these operations is staggering. The Martin Wolf deepfakes alone reached more than 970,000 users in EU countries, according to data from Meta’s Ad Library. Most disturbing is that this occurred even though Wolf was enrolled in Meta’s face recognition system specifically designed to prevent such impersonation.

One victim, a British office manager identified as Sarah, lost £4,000 after seeing an Instagram ad featuring a deepfake of Peter Hargreaves, co-founder of the UK’s largest investment platform. After joining a WhatsApp group through the ad, she was persuaded to download a fake investment app and deposit increasing amounts of money.

“Initially, I invested just £50,” Sarah told The Times, “but I quickly began putting in more of my savings when I saw what appeared to be profits accumulating.” Her account showed about £300 in profits on a £2,000 investment within two weeks.

When Sarah attempted to withdraw funds, she encountered a series of “taxes” and “fees” that required additional payments. By the time she suspected fraud, her money was gone, along with the WhatsApp group, her “mentor,” and the investment app.

In Israel, scammers deployed an even more sophisticated “pump and dump” scheme involving real financial assets. They artificially inflated the stock price of Ostin Technology Group Co. Ltd. (OST) by circulating deepfake videos of respected business figures including journalist Guy Rolnik, entrepreneur Eyal Waldman, and businesswoman Shari Arison.

The scammers invited users to WhatsApp groups where they advised purchasing OST stock, which was visibly rising in price. Over several weeks, the company’s stock rose to $9.02 before collapsing by 93% to just 13 cents. Two victims reportedly lost approximately $75,000 and $45,000 respectively.

Australia has seen similar scams featuring TV host David Koch, billionaire Gina Rinehart, conservationist Robert Irwin, and even Prime Minister Anthony Albanese. When users reported these fraudulent ads to Facebook, they received boilerplate responses stating the platform wouldn’t remove the content.

Meta’s inability to effectively combat these scams is particularly troubling given the company’s resources and AI capabilities. Even when victims and impersonated public figures directly report the fraud, the response has been inadequate. Meanwhile, Meta continues to profit from the paid promotion of these scams.

To avoid falling victim to deepfake investment schemes, experts recommend approaching social media ads with extreme caution and avoiding financial decisions based solely on information from these platforms. Remember that videos of famous people can now be easily faked, and be wary of investment opportunities promising quick profits with minimal risk.

The most important rule remains: if an investment opportunity sounds too good to be true, it almost certainly is. Use only verified investment apps from reputable brokers, and never trust download links sent by strangers in messaging apps.

As deepfake technology continues to advance, public awareness and platform accountability will be crucial in combating these increasingly sophisticated scams.