A retiree in Singapore lost money after believing in a deepfake video created by AI, impersonating a local minister who 'endorsed' cryptocurrency investment.
The incident shows that crypto scams are becoming increasingly sophisticated, often starting from advertisements, chat groups, and fake 'endorsements.' Victims are lured into providing personal information, transferring money, and then asked to manipulate bank accounts and retirement funds to 'fund' investments.
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Deepfake impersonating celebrities/officials can be used to 'legitimize' fraudulent crypto projects.
Fraudsters often pull victims into WhatsApp, leading to registration links, charging fees, and requiring screen sharing to take control.
Police warn that losses from investment fraud are rising sharply, and tracing and recovering cryptocurrency is very difficult.
Deepfake videos 'certifying' crypto can cause victims to lose real money
Deepfake uses fake images and voices to create a sense of credibility, causing victims to click links, register, and transfer money into a non-existent 'investment'.
A 75-year-old Singapore citizen reported seeing an advertisement with a video of a local minister discussing cryptocurrency investment, believing it was a sign of credibility. In reality, this video was a deepfake created by AI, while the 'investment plan' was a scam by malicious actors aimed at defrauding money from gullible individuals.
The victim shared that he wanted to 'extend' his retirement fund and thought he could do so by participating in a 'certified' crypto investment program. This is a common motif in investment fraud: tapping into the need for increased income, then creating social proof such as testimonials, profit photos, or associating with reputable individuals.
The victim was lured into a trap via a WhatsApp group and a registration link
Fraudsters often start by adding victims to chat groups, creating lively discussions about high profits, then providing videos/links to guide them to the next step of depositing money.
The victim reported that he was added to a WhatsApp group by unknown numbers since January. In the group, members discussed a 'high-profit' crypto investment program. One person shared a deepfake video of a minister 'supporting' the investment, causing him to trust and click on the accompanying link.
After clicking the link, he was asked to fill out a registration form and provide personal information. He also paid a registration fee of $250 via bank transfer. Collecting 'registration fees' or 'account activation fees' is a high-risk sign, especially when solicited through advertisements and anonymous chat groups.
Fake calls impersonating exchanges and the 'screen sharing' trick to withdraw funds
The perpetrators may impersonate crypto exchange staff, convincing victims to share their screens and log into financial accounts to manipulate transactions, transfer money, or change security settings.
After registering, the victim received a call from someone claiming to be from Coinbase, a crypto exchange that he believed was legitimate after researching on his own. The conversation was conducted in English; the caller introduced the 'benefits' of trading on Coinbase and mentioned that a colleague would contact him to complete the process.
A few days later, a 'colleague' called via video and asked him to share his smartphone screen. This person also guided the victim to log into the Central Provident Fund (CPF) and the bank account, then withdrew $4,400 from the CPF Ordinary Account to the bank account to 'invest'.
The withdrawal transaction was executed after increasing the daily withdrawal limit of CPF, with a waiting time of 12 hours. About a week later, the victim received an SMS notifying him of a withdrawal transaction of $3,999 from the account which he stated was unauthorized. When the caller continued to send more links, he began to suspect and refused to click.
The victim discovered early and blocked the account to limit damage
Stopping interactions, not clicking links, calling the bank to block accounts, and reporting to the police can help minimize losses when suspecting crypto scams.
The victim reported that when he asked more about the investment, the caller could not answer and abruptly hung up, only promising to update the transaction results in 'three days'. He immediately contacted the bank to report and block the account, while also notifying the police.
The total loss reported by the victim was $4,249. Despite losing money, he said he was fortunate to detect it early enough to avoid greater losses, as the fraudster continued to send links to push for the next steps.
Police warn that investment scams are increasing sharply and crypto is difficult to trace
Authorities warn that investment scams often use fake testimonials to lure victims, while the decentralized and relatively anonymous nature of digital assets makes tracking money flows and recovering funds difficult.
Police Superintendent Rosie Ann McIntyre, assistant director in charge of operations at the Scam Public Education Office, stated that losses from investment scams have increased significantly. She emphasized that victims are often attracted by fake testimonials and 'certifications', similar to the above case.
She also described a common tactic where fraudsters may spend months 'nurturing' the victim until trust is established, then execute a major scam. Additionally, she noted that the decentralized and relatively anonymous nature of digital assets makes them easy for criminals to exploit, while also making recovery efforts challenging due to difficulties in tracing and identifying beneficiaries.
Regarding the victim, he stated that he is now more cautious when encountering advertisement links for 'too good' investment opportunities, and will ignore them if they seem 'too good to be true'.
Frequently asked questions
What is deepfake in crypto scams?
Deepfake is a video/audio created by AI to impersonate real people, often celebrities or officials, to create a sense of credibility and lure victims to transfer money into a non-existent 'investment'.
Why do fraudsters often pull victims into WhatsApp?
Chat groups help create a 'crowd' effect through discussions and fake profit boasts, then guide victims to registration links, pay fees, and follow instructions to transfer money.
Is sharing your screen dangerous?
Yes. When you share your screen and log into the bank/retirement fund, the fraudster can guide the actions to transfer money, change security settings, or collect verification codes, leading to unauthorized transactions.
What should you do immediately if you suspect you have been a victim of cryptocurrency investment fraud?
Stop contact, do not click the link, do not provide OTP codes, call the bank to freeze/block the account and card, change passwords, save evidence (messages, phone numbers, links, transactions), and report to the authorities.