SC ISSUES PUBLIC WARNING ON DEEPFAKE INVESTMENT SCAMS

KUALA LUMPUR, July 22 (Bernama) -- The Securities Commission Malaysia (SC) today cautioned the public on investment scam tactics using deepfakes created through artificial intelligence (AI) to mimic prominent people and names of reputable companies.

In a statement, the SC explained that the perpetrators of these scams tricked their victims by posting deepfake videos on social media platforms, which can then be disseminated across messaging apps. 

“These videos ‘feature’ certain public figures or companies, in an apparent bid to lend credibility to their work.

“Through the use of AI technology, the video is manipulated to closely resemble the voices of these public figures, including lip-syncing, making the so-called investment opportunities appear genuine,” the capital market regulator said.

The SC said typically, these deepfake videos would also promote investments purportedly offered by reputable companies.

It said the postings include a "Learn More" button or link, redirecting interested parties to a sign-up page that gathers their personal information. 

“Unsuspecting public accessing the link will also be asked to download an application, which could expose them to cybercrime risk. 

“Once signed up, potential victims are contacted by agents who then deceive them by asking to transfer money or provide further personal details,” it added.

The SC, with the assistance of Meta, has removed such videos in order to curb access by the Malaysian public who may fall victims to these scams.

The agency said it would also work with Malaysian Communications and Multimedia Commission (MCMC) and relevant authorities to take appropriate action against such investment scam activities.

“In addition, the public is advised to be vigilant in evaluating investment offers, including ensuring that they do not transfer or deposit money into suspicious accounts,” the SC said.

-- BERNAMA