It’s happening. Hong Kong police have just decimated a fraud syndicate that was using deepfake technology and face swapping to steal over $360 million, or USD $46 million, from victims worldwide.
Police said today that they arrested 27 people, including college students, who created a fake crypto trading platform to lure victims into Pig Butchering scams.
The First Time Police Have Cracked Down On Deepfake Syndicate
Police sources say this is the first time they have smashed a fraud syndicate that employs AI technology in its scams.
The Pig Butchering compound where the arrest was made was set up in a 4,000-square-foot industrial park in Hung Hum in October 2023. The scammers began recruiting people to work in the scam compound.
They Recruited Digitally Savvy College Students
According to an article in the SCMP, Senior Superintendent Fang Chi-kin, who heads the New Territories South regional crime unit, said the recruits included university digital media graduates who helped the syndicate set up the fake trading platform and carry out its crimes through computer networks and social media platforms.
“The syndicate’s operation began with online romance,” Fang said.
“Following initial contact with victims on social media platforms, they first sent artificially generated photos using AI technology to create attractive individuals in terms of appearance, personality, occupation, education and other aspects.”
They Used Attractive Woman For The AI Scam
According to police, the scam compound engaged in classic cryptocurrency romance scams, first luring victims in on social media and then tricking them into depositing their funds into fake cryptocurrency platforms.
When a victim became suspicious and requested a video call, the scammers would use AI to put the victims at ease.
“This technology transformed the scammers’ appearances and voices into highly attractive females in terms of looks, attire, and speech,” said Fang, “making the victims trust them unquestioningly,” he said.
Solutions Such As Haotian AI Are Being Widely Used By Scam Bosses
As reported earlier this week, AI solutions are being sold to Pig Butchering scam bosses to help them supercharge scams.
First identified by Troy Gochenour months ago, companies like Haotian AI are selling white glove deepfake services to help these scam compounds collect more money from victims.
An ad that appears on Telegram for Haotian AI can be seen here.
The software is remarkably realistic, with demos proving how well it works. In this video demo, a Chinese model morphs here face to look like Anne Hathaway.
Is this the software the deepfake syndicate used? Perhaps.
They Set Up A Performance Board For Top Earning Scammers
According to police, the scam operation was a well-oiled machine that invented their top performers, they even had a performance board where they touted the top scammer of the month.
“They set up a performance board. The teams and members who successfully fooled the most victims were listed on the board. The one who topped the chart last month gained US$266,000,” he said.