Deepfake Elon and the Quantum AI Scam
An “investment offer” is making the rounds of global social media presented by an Elon Musk avatar – and as soon as it is outed in one place, it pops up in another
In a troubling trend that underscores the growing sophistication of online fraud, a scam called Quantum AI is making waves across global social media platforms. It is not a “new scam” as much as it is continuing to enter new markets, apparently on a revolving basis. In December 2024, it was posted on Linked In, via cannabis investment networks. It is also possible to find different variations of the site, and the offer, in multiple languages online, well optimized for SEO.
Exploiting the likeness of Elon Musk—Tesla CEO and tech visionary—the scam falsely promotes a revolutionary investment platform purported to generate significant returns using artificial intelligence. So far, regulators in Hong Kong and Australia have issued a formal warning (in May), but this is clearly a global scam that is entering different countries and online networks, one after another. As these fraudulent schemes gain momentum, they highlight the urgent need for robust international measures to curb cybercriminal activity.
Lars Olofsson, a Swedish attorney and scam litigator based in the UK said, “the fact that this scam has been circulating for over a year, globally, points to the growing and urgent need for not only regulators to address these issues, but more independent teams to fill in the gaps where governments fail.” Olofsson is currently battling several international investment scams. So far, his team has not won any legal battles, but they have helped the police in multiple countries identify scammers behind large, international frauds. “This is far from glamorous work” said Olofsson, “and we are hitting many roadblocks, but that is just more motivating to an international team which is highly motivated and not giving up.”
The Anatomy of the Quantum AI Scam
The Quantum AI scam capitalizes on two factors: the public’s fascination with artificial intelligence and Elon Musk's carefully curated “brand.” Social media ads, often featuring manipulated videos of Musk seemingly endorsing the platform and lure victims into believing they’re participating in a cutting-edge investment opportunity. Clicking on the ads redirects users to professional-looking websites filled with fabricated testimonials and claims of extraordinary profits.
Victims are encouraged to deposit small amounts to "get started." These initial investments often generate fake returns, creating a false sense of success. Convinced by these fabricated results, individuals invest more significant sums, only to find themselves unable to withdraw their money. By the time victims realize they’ve been scammed, the perpetrators have vanished with their funds.
The Rising Threat of Online Scams
The Quantum AI scheme is just the latest in a surge of investment scams leveraging social media and AI technologies. According to recent reports, online fraud has skyrocketed in Europe, with a significant portion attributed to fake investment schemes. The European Union Agency for Cybersecurity (ENISA) warns that the sophistication of these scams has increased dramatically, making them harder to detect.
Several factors contribute to the rising prevalence of such scams:
Deepfake Technology: Scammers now use AI tools to create convincing deepfake videos, making it appear as though public figures like Musk are personally endorsing their schemes.
Targeted Advertising: Social media platforms enable fraudsters to deploy targeted ads based on users’ browsing habits and interests, ensuring their scams reach vulnerable demographics.
Global Reach: The internet allows these scams to transcend borders, complicating efforts to track down perpetrators.
Psychological Manipulation: Scammers exploit fear of missing out (FOMO) and financial insecurity, particularly in times of economic uncertainty.
What Governments Are Doing About It
European Union
The EU has ramped up efforts to combat online fraud, including scams like Quantum AI. Key initiatives include:
Digital Services Act (DSA): This legislation holds social media platforms accountable for hosting fraudulent ads, requiring them to implement stricter content moderation and transparency measures.
Cooperation Among Member States: Cross-border collaboration among law enforcement agencies has been strengthened to track and apprehend cybercriminals operating across the EU.
Public Awareness Campaigns: EU bodies are increasing investment in educational initiatives to help citizens identify and avoid scams.
United States
The U.S. is facing similar challenges with online scams and has introduced measures aimed at curbing their proliferation:
Federal Trade Commission (FTC) Enforcement: The FTC has intensified crackdowns on fake investment schemes, penalizing social media platforms and advertisers that fail to prevent the spread of fraudulent content.
AI Regulation Frameworks: Discussions are underway in Congress to regulate the misuse of AI technologies, including deepfake content used in scams.
International Partnerships: The U.S. is collaborating with European authorities to share intelligence and develop unified strategies to combat cybercrime.
Unfortunately, given the recent election and a commitment to “streamlining” government agencies, it is not known how effective US agencies will be in the future in ending these kinds of fake claims and schemes.
What Social Media Platforms Should Be Doing
“One of the most dangerous forces in the world right now is AI mixed with social media,” Olofsson says. “Even before AI, we were seeing a proliferation of sites using celebrities’ pictures. With new technology that can animate anyone’s photograph, the risk of these scams becomes even worse. What is desperately needed is not only agile regulation, but a widespread education program. Disinformation is dangerous – for citizens and for consumers.”
While governments at least in the EU are stepping up, social media platforms bear significant responsibility for enabling these scams. Critics argue that tech companies prioritize ad revenue over user safety, creating an environment ripe for exploitation. To address this issue, platforms must:
Improve AI Detection: Use AI to detect and remove fake ads and deepfake videos more effectively.
Increase Transparency: Allow users to see who is funding ads and verify their authenticity.
Proactively Monitor Fraud Trends: Collaborate with cybersecurity experts to stay ahead of emerging scam tactics.
Support Victims: Establish channels to report scams and assist victims in recovering lost funds.
How to Protect Yourself
Individuals can take steps to safeguard themselves against scams like Quantum AI:
Verify Claims: Always cross-check investment opportunities with trusted financial institutions or official sources.
Be Sceptical of Celebrity Endorsements: Remember that public figures rarely endorse financial products, and their images can be manipulated. Also remember that, just as in the OmegaPro scam, just because an influencer has endorsed something, it does not mean anything.
Report Suspicious Activity: Notify social media platforms and authorities if you encounter fraudulent ads.
Educate Yourself: Stay informed about the latest scams and how they operate.
The Quantum AI scam serves as a stark reminder of the vulnerabilities inherent in our digital age. As cybercriminals grow more sophisticated, the responsibility to combat their schemes must be shared by governments, social media platforms, and individuals.
The challenge is enormous, but with increased vigilance and innovation, it’s possible to outpace the ever-evolving threat of online scams. That said, until governments decide to finally, properly regulate social media, these threats will continue to make life dangerous online.