Spanish authorities have arrested six individuals connected to a sophisticated global investment scam that stole over $20 million from at least 208 victims using artificial intelligence and deepfake technology, police announced on April 7.
The suspects face charges of fraud, money laundering, and document falsification as part of a criminal organization. During a raid on the operation’s alleged leader, authorities seized phones, computers, hard drives, a simulated weapon, and extensive records. The leader alone reportedly used over 50 false identities.
The scam, which operated internationally, used AI algorithms to target victims and deepfake ads featuring national celebrities to promote fake crypto investments. Posing as financial advisers or even potential romantic partners, the fraudsters convinced victims to invest in high-return, no-risk cryptocurrency schemes.
Once the initial funds were stolen, the scheme escalated. Scammers reapproached victims twice more — first as investment managers claiming the funds were frozen, then as fake Europol agents or British lawyers offering to recover the money for a fee. Each follow-up required a deposit under false pretenses, further victimizing the already defrauded individuals.
“Victims were not selected randomly,” Spanish police noted. “Algorithms selected those whose profiles matched the cybercriminals’ searches,” enabling targeted advertising on websites and social media platforms.
The scam’s scale and deception highlight growing concerns among cybersecurity experts about AI-enhanced fraud. In its February report, blockchain analytics firm Chainalysis warned that generative AI is making scams more scalable and cost-effective for cybercriminals.
The investigation has also uncovered a network of fake companies used to launder the stolen money and international connections to the criminal ring, suggesting more arrests may follow in other countries.
Authorities urge the public to remain cautious of unsolicited investment offers and to verify the legitimacy of financial opportunities, especially those promising guaranteed returns.
