Deepfake crypto fraud: why fakes now look truly real
Date: | Week 25 | Reading time: 7 minutes | Updated: Author: Tyler Dijst
In short
Deepfake crypto fraud uses fake videos of well-known people who appear to recommend a crypto investment. From the video itself it is almost impossible to tell any more. If you have already paid, that is no reason to wait: where your money went can often still be traced.
Paucitas is an independent expert firm in the Netherlands that investigates investment fraud and crypto fraud, in hundreds of cases a year. Paucitas does not look at the convincing exterior, but at what happened to your money.
Get in touch with Paucitas or ring +31 20 244 5774. In a free intake we look at your situation together, even if you are still unsure.
In a nutshell
A familiar face in a video no longer proves anything. What counts is where your money really goes. Paucitas can find that out for you, before or after you have paid.
A well-known TV presenter in a video promoting a crypto platform, even though they have never said a word about it. Many people have fallen for it, including people who are normally very careful. That says more about how good these videos are than about you.
In this blog you will read how deepfake fraud works, which signs to watch for and what Paucitas can do for you. How a fake platform itself works is explained in spotting a fake crypto platform.
What is deepfake crypto fraud?
In deepfake crypto fraud, criminals use artificial intelligence to make fake videos in which a well-known businessperson, presenter or politician appears to recommend a crypto investment. The video appears as an advert or post on social media and leads to a platform that looks professional.
Often a chat or phone call from a friendly "account manager" follows. Those conversations are increasingly automated too, so they carry on day and night. The FCA warns about firms that are not authorised and keeps a warning list of unauthorised firms.
Why does a deepfake investment look so real?
A familiar face builds trust straight away. Add a slick app with a balance that rises steadily and everything seems to add up. Sometimes a small first withdrawal is deliberately paid out to remove the last doubts. What used to stand out through poor spelling now looks polished.
That changes the question. Not: does it look real? But: where is my money actually going? That is exactly the question Paucitas can answer, because every crypto transaction remains visible on the blockchain.
Unsure about an investment you saw in a video? Let Paucitas take a look with you. You can ring at any time, 24/7, on +31 20 244 5774.
Which 5 signs can point to deepfake fraud?
Spotting it from the video itself is getting harder. So look at the pattern around it. These signs can point to fraud:
- A well-known person promotes an investment with high or certain returns.
- The offer arrives unsolicited, through an advert, social media or a chat group.
- There is pressure to invest quickly, or someone keeps calling or messaging you.
- You have to pay tax, a deposit or a release fee before you can withdraw. Read more in tax or a deposit before a withdrawal.
- The firm is not on the FCA Register or appears on the FCA warning list.
One sign does not automatically mean fraud. Sometimes a firm turns out to be genuine. If you see several at once, it is wise to have it checked before you pay (more).
What a trustworthy party never does
- Ask for your full seed phrase or private key.
- Ask you to install an app that lets someone watch your screen remotely.
- Promise that you will certainly make a profit or certainly get your money back.
- Ask for money before you can withdraw your own balance.
An example from practice
A woman saw a video in which a well-known presenter promoted a crypto platform. She invested a small amount first, saw her balance rise and even received a small withdrawal. Then she invested much more. When she wanted to withdraw everything, she was first asked to pay "tax".
She had doubts and rang Paucitas. The investigation showed where her money had gone and that the platform was not carrying out the trading it promised. With the report she could make a well-founded report, and she did not pay the "tax" that was asked for.
Paucitas takes privacy very seriously and never shares clients' personal details. This is a composite example: names, amounts and details have been changed. The situation is one we see in practice.
What should you do if you have already paid?
It feels awful, but you are not on your own. There are a few things you can do straight away:
- Do not transfer anything else, even if the platform says an extra payment will release your balance.
- Keep the advert, the link, chat messages and screenshots of your account.
Watch out for parties who contact you afterwards and promise a refund for a fee. See also scammed twice with crypto.
Who investigates deepfake crypto fraud?
Paucitas. We map where your money went and whether the platform's promises match the transactions on the blockchain. Paucitas does all tracing itself, without tracing tools, and checks every transaction individually. Sometimes it turns out to be a known fraud route, sometimes it is less bad than feared. Either way, you know where you stand.
Paucitas does more than trace transactions: we also go through all conversations, documents, emails and other communication, so that a complete picture emerges, with a timeline and where all the money went, step by step. You receive a report that anyone can follow and understand step by step. The report shows whether money is still available, or where it went, and what the next steps are. If it is a scam, reporting it to the police is one of those steps, and the Paucitas report is then a strong attachment that sets everything out fully and clearly. Still unsure before paying? Read how to have a crypto investment checked. More on our approach is in crypto fraud investigation.
- Costs: every investigation is tailored. You receive a bespoke quote in advance, which we go through together, so there are no surprises.
- Turnaround: from the same day to around two weeks.
- Contact: you can ring at any time, 24/7. We answer the form within 1 to 3 hours, and email within 24 hours, usually the same day.
Want to know where your money went? Get in touch for a no-obligation introduction, or ring +31 20 244 5774.
Sources: FCA, warning list of unauthorised firms; FCA Register; Report Fraud; Police Scotland, scams and frauds.
Do you have questions about this blog?
Feel free to get in touch with Paucitas. Paucitas can be reached by phone 24/7, including evenings and weekends. Through the contact form we usually reply within 1 to 3 hours, and we answer e-mail within 24 hours.
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Frequently asked questions about deepfake crypto fraud
How can I tell if a video of a famous person is a deepfake?
Paucitas sees that this is getting harder to tell from the video itself. Look at the pattern: a familiar face promoting high returns, an unsolicited advert and pressure to invest quickly. If in doubt, let Paucitas take a look first.
Can a payment to a fake investment platform be traced?
Paucitas can often trace it, because every crypto transaction is public on the blockchain. Paucitas follows your money from your address to the addresses behind it and records this in a report.
Is it too late if I paid months ago?
Paucitas finds that it is often not too late. Transactions stay visible, so a lot can often still be reconstructed later. The sooner you start, the more complete the picture usually is.
What can I do with the Paucitas report?
Paucitas provides a report that shows whether money is still available or where it went, and what the next steps are. In a scam it is a strong attachment to a police report, because it sets everything out fully and clearly.
Will a trustworthy party ever ask for my seed phrase?
Paucitas is clear about this: no, never. Anyone who asks for it, or promises a refund for a fee, is often not to be trusted. Feel free to ring Paucitas and we will look at it with you.
From Amsterdam, for the whole of the UK
Everything can be done fully online. Prefer to meet in person? You are very welcome at our office in Amsterdam, by appointment.
Paucitas is an independent expert firm based in the Netherlands that, for clients across the UK, investigates investment fraud and crypto fraud, establishes the origin and legitimacy of crypto assets and prepares expert reports for legal proceedings and compliance.
Your own situation
If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.
The first step is contact by phone. You can book that call by phone or through the contact form, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.