"I am sick" - Scammers use AI and Crypto Assets influencers' false identities to steal $4 million.

Source: Cointelegraph Original: "{title}"

Scott Melker, the host of the cryptocurrency podcast "The Wolf Of All Streets," stated that he received news that scammers are using his facial photos and name, and at least one victim has been defrauded of $4 million.

On April 23, this cryptocurrency investor said: "I feel very upset," he revealed that a private detective contacted him, stating that his client was scammed out of 4 million dollars by a Nigerian fraud gang, and the scammers used his name and photo as bait.

"They have obviously scammed a lot of people," Melker said, "They sent the victims a fake driver's license to prove that it was me," and used his profile picture from platform X.

The scammer used artificial intelligence (AI) to generate fake identification cards and used an electronic mail account that, although fake, looked very convincing.

"They used AI for video calls," Melker said these calls "were clearly done very professionally." He added that the scammers also faked his wife's and children's accounts to support the identity verification.

Technical analyst "TheChartGuys" reported a similar case where a victim was scammed out of $5,000 after the fraudster used AI deepfake technology to replicate their voice.

Cryptocurrency consultant and trader "Nebraskan Gooner" stated that this ID can be easily found to be fake through a simple Google search.

He pointed out that there are some subtle differences in the address and date format on the ID card. He said that the means of these fraudsters have become so sophisticated that it is indeed worrying, but "given that this appears to be such a professional scam operation, these oversights are surprisingly obvious."

Cointelegraph has reached out to Melker for further comments on this matter but has not yet received a response.

With the development of technology, AI-generated fraud cases have surged.

In March, the California Department of Justice warned that they had discovered seven new types of cryptocurrency fraud schemes involving AI.

In February, blockchain analysis company Chainalysis stated that 2025 will be a significant year for AI fraud, claiming that generative AI is making scams "easier to scale, lowering the cost for criminals to execute."

In a recent report, software giant Microsoft stated that criminals are using AI to "enhance their fraudulent tactics."

The report states: "AI tools can scan and scrape company information available online, helping cyber attackers create detailed profiles of employees or other targets, thereby producing highly convincing social engineering bait."

"I think the situation will only get worse," Melker sighed.

Related news: Los Angeles police recover stolen airport Bitcoin (BTC) mining machines worth $2.7 million.