Public urged to be vigilant for deepfake impersonators
Business leaders are the latest targets of impersonation by investment scammers using deepfake technology to dupe victims, the Financial Markets Authority (FMA) has warned.
Clare Bolingford, Executive Director, Licensing and Conduct Supervision at the FMA, said scammers are now creating social media profiles impersonating business leaders on platforms like Facebook and Instagram.
These scammers publish ads, often including deepfake videos, where they talk about the business leader's successful investment history and encourage people to join WhatsApp groups where the scams will take place.
This is the latest version of the deepfake scam, which also previously impersonated New Zealand journalists, politicians, and actors.
"Impersonating business leaders and commentators is a new feature of this type of scam, and they include deepfake videos that look realistic," Bolingford said in a statement.
Investment scam in New Zealand
The scams involve getting unsuspecting victims to join WhatsApp groups through the ads, according to the FMA.
In these groups, the investment "mentor" or "coach" may ask a victim to install software on their device, which will grant them remote access to the victim's personal and financial information.
They will also recommend an investment platform, where victims will be asked to pay fees before withdrawing their investments.
"Even if these fees are paid, no money is received," Bolingford warned.
Similar scams involving the WhatsApp platform have also been reported across the world, such as Hong Kong, where online employment scams surged in the first five months of the year due to "click farming" swindles.
"The impersonations of public figures in scams are not unique to New Zealand – they are carried out all over the world, tailored to each country cutting and pasting in the names and identities of local celebrities, journalists, politicians, business leaders, and commentators," Bolingford said.
"The names and faces keep changing, but the promise of investment platforms and easy money, resulting in New Zealanders being scammed out of their savings, remain the same."
The warning comes as 47% of New Zealand firms that have been targeted by deepfake scams admit that they have fallen for these scams, according to a Mastercard report last year.
Among the impersonated individuals in these deepfake scams are employees, chief executive officers, board members, and law enforcement officers.
