Deepfake Celebrity Ads Used to Steal £27m
in Crypto Scam

A group headquartered in Georgia operated a cryptocurrency investment scam involving Authorised Push Payment (APP) Fraud. The group ran deepfake celebrity ads across social media, including one of Martin Lewis, a trusted household figure and founder of Money Saving Expert.

The group then followed up with phone calls, pressuring victims to open accounts with digital banks such as Revolut, Kroo and Chase and persuaded them to transfer their money.

Asking people to transfer money from one account to another account in the same name is a common tactic used by scammers, as it means the first bank is less likely to raise red flags about potential fraud. The second account is often a newly set up account with a digital bank or Electronic Money Institution (EMI), whose anti-scam technology might not be as well-developed compared to traditional high street banks.

The scammers then ask their victim to open a cryptocurrency wallet with a legitimate platform and to share the login details. Under the pretence of trading cryptocurrency on their behalf, the scammers now have full control of their victims’ money and quickly move it to another account in their sole control. Most victims don’t realise they have been scammed until it is too late, and their money has disappeared.

Over a million calls were leaked from the fraudster’s call centre, exposing their operations. Swedish broadcaster SVT shared files from the operation with the Organised Crime and Corruption Reporting Project (OCCRP) and other reporting outlets. It was revealed that since May 2022, over 6,000 people were tricked into parting with a collective £27m. An estimated 45% of fake calls were targeted at UK phone numbers, including a retired NHS doctor in her 70s who lost around £50,000 and a retired stockbroker who lost £125,000.

A deepfake can be a picture, video or audio made using artificial intelligence (AI) software with the intention of impersonating a real person. AI technology is improving on a daily basis and can digitally mirror a person’s facial features and movements, body and voice.

While deepfakes can be used for research or fun, they are also being used to impersonate real people under malicious circumstances like fraud.

Authorised Push Payment (APP) Fraud uses social engineering to persuade or pressurise people into transferring money from their bank accounts, using the Faster Payments Service (FPS), the system behind those almost-instant payments we make when using telephone or online banking.

Scam victims ‘authorise’ the payments, believing the reason for making them is genuine, such as purchasing something from a website, paying a professional adviser such as a solicitor, or making an investment. There are many types of APP Fraud, with the fraudsters using increasingly innovative and sophisticated scams and tactics. There are some red flags to look out for in cryptocurrency scams and ways you can keep your money safe.

The UK government introduced the Online Safety Act in 2023 to protect children and adults online. The Act is designed to put more onus on social media companies and online search services to reduce the risks of fraud and illegal activity. However, measures against fraudulent advertising are not yet live, despite promises to outlaw such adverts on social media in the Online Safety Bill 2022.

As of October 2024, the Payment Systems Regulator (PSR), an independent economic regulator of payments systems, introduced the Authorised Push Payment Reimbursement Scheme as part of a wider fraud strategy. The scheme enforces a mandatory reimbursement within five working days provided they meet the criteria of APP fraud, and their claim is not more than £85,000.

Businesses, government and financial institutions are being urged to do more to prevent rising fraud rates and offer more protection to their customers and users. Martin Lewis, whose face has featured heavily on ads published across Facebook, has previously sued the company for failing to remove false advertising that led to fraudulent activity.

If you think you have been involved in a cryptocurrency investment APP scam, you should report this to your bank, the police and Action Fraud as soon as possible. Action Fraud is the National Fraud and Cyber Crime Reporting Centre which investigates fraudulent activities.

Your bank should investigate what happened, deciding whether they consider your case to be APP fraud. You may be entitled to a refund, however not all cases fall within the new reimbursement scheme.

If your bank will not compensate you or you disagree with their decision, you may be able to make a complaint to the Financial Ombudsman Service (FOS). FOS is an independent, government-backed body responsible for resolving disputes between consumers and financial institutions like your bank.

Sarah Spruce, Legal Director at TLW Solicitors, said:

“The number of victims and amount of money stolen in this case reflects a malicious crime on the rise. The advancements in technology and AI have only made fraudulent activities harder to catch. This is why it’s never been so important for social media companies, financial institutions and the government to work together to tackle this widespread issue.

As we deal with so many of these claims, our message to anyone who finds themselves a victim of fraud, is not to be afraid, embarrassed or ashamed, and to seek help immediately. Fraudulent campaigns can catch anyone out and are becoming harder to spot.

Our team is highly experienced in progressing APP fraud claims and can support you on your next steps. If you have lost out to the scammers, get in touch for a no obligation and confidential discussion to see if you might be eligible to make a ‘no-win, no-fee’ refund claim.”