According to Cointelegraph, crypto scammers using artificial intelligence-powered deepfake videos have been increasingly active in the second quarter of 2024, as reported by software firm Gen Digital, the parent company of antivirus firms Norton, Avast, and Avira.

In Gen Digital’s quarterly report, the company highlighted that they followed a group called “CryptoCore,” which used AI-powered deepfake scams to defraud crypto holders. The group touts fake crypto investments and exploits official videos of prominent individuals like Elon Musk, Michael Saylor, Vitalik Buterin, and Larry Fink. It replaces the audio with AI-generated voices or mixes unofficial material with official footage to conduct their scams.

Gen Digital said that the criminal organization spreads its videos on social media platforms like YouTube, X, and TikTok. The scammers also use hacked social media accounts with large followings before displaying livestreams promoting their scams. Gen Digital’s chief technology officer, Siggi Stefnisson, mentioned that cybercriminals are expanding their toolkits with different uses of AI to strengthen attacks. Stefnisson emphasized that scammers are adept at exploiting what is most likely already on their target’s minds, including elections, love, or financial security. He urged consumers to stay informed and alert.

The company also reported that the AI deepfake group they called CryptoCore has already gained millions from their attacks. In the last quarter, Gen Digital said that $5 million in crypto was lost to this attack vector. During SpaceX’s integrated flight test in June, Gen Digital estimated that 50 YouTube accounts were hijacked. This cyberattack resulted in 500 unauthorized transactions, leading to the theft of $1.4 million.

In August, antivirus software company Avast also conducted a deep dive into CryptoCore and learned that the most exploited topics using AI-powered deepfakes to conduct scams included SpaceX, MicroStrategy, Ripple, Tesla, BlackRock, and Cardano. The firm noted that the scammers can now perform high-quality lip-syncing, which can mislead viewers into thinking that they are watching official promotions from prominent individuals.