Elon Musk Deepfake Scams: Retiree Loses $690,000 in AI-Driven Fraud Frenzy

AI-generated images and videos featuring Elon Musk have been exploited in thousands of fraudulent advertisements, leading to significant financial losses. Deloitte estimates that AI-driven "deepfakes" could result in billions of dollars in annual fraud.

Late last year, 82-year-old retiree Steve Beauchamp watched a video where Musk endorsed a high-yield investment opportunity. The video appeared legitimate, with Musk's voice and lip movements perfectly synchronized. Beauchamp contacted the advertised company and opened an account with $248.

Over the next few weeks, through a series of transactions, Beauchamp drained his retirement account, investing more than $690,000. These funds ultimately vanished, directed to digital fraudsters at the forefront of AI-driven crime.

The perpetrators had edited a genuine interview with Musk, using AI tools to mimic his voice. AI technology has advanced enough to alter subtle mouth movements to match new scripted dialogues. For the average viewer, this manipulation is nearly undetectable.

Beauchamp remarked, "The person on the screen was definitely Musk. I can't tell if it was AI making him say those words, but visually, it was him."

In recent months, thousands of AI-driven videos, known as "deepfakes," have flooded the internet. These videos featuring "Fake Musk" have deceived numerous potential investors. According to Deloitte, AI-driven deepfakes are projected to cause billions in fraud annually.

These videos are inexpensive to produce, costing only a few dollars and taking minutes to create. They are promoted on social media, including paid ads on Facebook, increasing their reach.

Francesco Cavalli, co-founder of Sensity, a company that monitors and detects deepfakes, stated, "This might be the largest deepfake-driven scam ever." The videos often capture Musk's distinctive stiff pace and South African accent.

Sensity analyzed over 2,000 deepfakes and found Musk to be the most common figure featured. Since the end of last year, Musk appeared in nearly a quarter of deepfake scams, with his involvement in crypto-related videos soaring to nearly 90%.

Additionally, prominent figures like Warren Buffett and Amazon founder Jeff Bezos frequently appear in such deepfake ads.

Musk has yet to comment on the issue.