The rise of online identity theft represents a serious global threat and poses significant challenges for law enforcement and society. Advances in generative AI and editing tools allow criminals to quickly create realistic video and audio deepfakes. By impersonating well-known figures, they can deceive individuals and organizations, leading to risky investments and emotional manipulation. Many individuals have recently suffered financial losses due to deepfake videos and fraudulent social media profiles.
In Sweden, the Financial Supervisory Authority and several banks have reported fake accounts using the likeness of financial experts. Recently, fraudsters escalated their tactics by creating video deepfakes of well-known financial experts, making it even easier to deceive potential investors. Victims, believing they were receiving exclusive financial advice, were lured into private chat groups that promoted specific stocks. This scheme is a classic example of pump-and-dump fraud, where a group of investors manipulates the price of a stock by spreading false or misleading information to increase demand (pumpup) for the stock. Once the stock price has risen sufficiently, these investors sell their shares (dump) to make a profit, often leading to a crash in the stock price and significant losses for other investors.
Countermeasures: Strategic, Preventive, and Operational
The Swedish Police have implemented a comprehensive strategy to combat online fraud, focusing on collaboration among law enforcement agencies (LEAs), banks, telecommunications companies, and regulatory authorities. Key initiatives include the establishment of a Financial Intelligence Centre, which facilitates information exchange to disrupt the criminal economy, as well as partnerships with Europol and global task forces to enhance anti-fraud efforts.
Targeted awareness campaigns, particularly for older adults, promote safe practices and raise awareness of social engineering threats, featuring initiatives like “Don’t Try to Fool Me” and “Talk to Friends and Family About Fraud.” Additionally, campaigns such as “Hang up the phone!” encourage vigilance against suspicious calls.
Recommendations from the Swedish National Fraud Centre
- Be skeptical of ads promising quick profits or “exclusive” offers. Verify sources and cross-check investment advice with banks or official websites.
- Always verify the sender, especially with unexpected videos, calls, or messages.
- If you receive a call from a “relative” asking for money, hang up and call your relative back yourself.
- Avoid rushed decisions. Fraudsters often pressure their victims to act quickly.
- Report suspicious content to the platforms and the police.
- Talk to someone you trust.
Conclusion
Deepfake scams represent a serious global threat. By staying alert, verifying information, and reporting fraud attempts, citizens can help reduce the risks associated with this deceptive technology. Together, we can create a safer online environment and protect ourselves and our communities from the dangers of fraud.
Be safe,
Swedish Police Authority
This article is written by Galaxia Wallin, working at the National Fraud Centre within the Swedish Police Authority.