The company’s CEO appeared in a YouTube video discussing economic opportunities facilitated by an artificial intelligence program that could potentially yield significant profits from cryptocurrency investments.
However, it was later revealed that the individual in the video was not real; instead, they were a product of artificial intelligence involved in a scam designed to defraud potential investors.
Steve Weisman, a counsel at Margolis, Bloom & D’Agostino in Buffalo, who teaches white-collar crime at Bentley College in Waltham, emphasized how the use of modern technology in such fraudulent schemes highlights the ongoing battle against scammers and cybercriminals.
Weisman, drawing from his extensive experience publishing over 4,400 “scam of the day” articles on his scamicide.com site over nearly 12 years, underscored the sophisticated tactics employed by identity thieves and fraudsters to deceive and exploit victims.
During a hearing held by the U.S. Senate Special Committee on Aging on November 16, Weisman and three other experts provided testimony on how con artists leverage artificial intelligence to create voice replicas and deepfakes targeting older Americans.
Weisman cited the Federal Trade Commission’s Consumer Sentinel report for 2022, revealing that older Americans reported losses exceeding \(1.6 billion due to fraud and scams. However, the actual figure could be as high as \)48.4 billion, considering underreporting due to shame or sympathy.
At the hearing, Weisman highlighted the prevalence of fear and greed in various scams, particularly noting the rise of cryptocurrency-related fraud targeting seniors.
The hearing also featured testimonies from Philadelphia lawyer Gary Schildhorn, Tom Romanoff from the Bipartisan Policy Center, and Tahir Ekin from Texas State University, shedding light on the need for regulatory measures to combat AI-generated scams and protect consumers from cryptocurrency-related schemes.
Weisman commended the efforts of lawmakers like Sen. Elizabeth Warren in proposing legislation to address the escalating threat of crypto crimes, emphasizing the urgency in implementing regulations to curb fraudulent activities.
Moreover, Weisman advocated for the Stop Senior Scams Act, a proposed legislation co-sponsored by Sen. Bob Casey, aimed at establishing a national expert group to develop educational materials for various industries to prevent scams targeting seniors.
In conclusion, Weisman stressed the importance of education in recognizing and thwarting scams, especially among older individuals who may be more vulnerable to deceptive tactics. While legislative measures are crucial, he emphasized the role of individual vigilance and critical thinking in safeguarding against fraudulent schemes.
