Deepfake videos, highly realistic fake ads, and convincing AI-generated ‘analysts’ are making online investment fraud significantly easier and more scalable. Criminals are increasingly using these techniques to deceive individuals with fabricated videos or audio clips of celebrities or friends.
The Netherlands Authority for the Financial Markets (AFM) is sounding the alarm and warning against this new form of online fraud.
AFM Warns Against Fake Ads Using AI #
YouTube and other platforms are now flooded with deepfakes featuring Dutch financial experts supposedly promoting cryptocurrencies or trading bots. For example, former President of the Dutch Central Bank (DNB), Nout Wellink, was featured in a deepfake ad claiming he promised tens of thousands of euros in monthly profits through his WhatsApp group with obscure crypto coins. Wellink reacted with shock, stating he would “never in his life” recommend a crypto investment.
The development of AI is progressing so rapidly that criminals can now tailor these techniques precisely to individual consumers, a practice known as ‘hyperpersonalization.’ The AFM warns against this technology in a new report.
While the report does not contain specific figures, various studies show that fraud involving AI and fake videos is increasing sharply. Research by Signicat indicates that 6.5% of all fraud attempts now use videos that are sometimes nearly indistinguishable from real ones. Three years ago, that figure was just 0.1%.
The AFM also points to the vulnerability of financial markets in its report, stating that due to ongoing geopolitical tensions, vigilance and resilience are necessary. It also underscores the importance of European cooperation to combat this form of crime.
The Impact of AI on the World of Fraud #
What sets AI apart from older forms of fraud is primarily its scale and quality. The technology provides ready-made tools to mimic voices and faces, generate texts, and automatically send out thousands of variations of the same scam.
AFM Chairman Laura van Geest admits that the regulator cannot completely reverse this trend: criminals are getting the technology “delivered almost as a package” and often operate across national borders.
A month ago, the AFM already sounded the alarm about investment fraud via chat apps like WhatsApp and Telegram. Consumers are being added unsolicited to groups where “exclusive” tips about crypto and stocks are shared. Sometimes scammers use random names, and other times they steal the identities of well-known analysts or authors.
With this increase in fraud, the focus is shifting more towards awareness. The AFM points to several clear red flags: being added to an investment group unsolicited, promises of guaranteed profits, extremely high returns, and pressure to immediately transfer money or crypto.