AI Deepfake Scam Targets Crypto Investor, Costs Victim $4 Million
1min read Scott Melker, the host of the Wolf Of All Streets podcast, has revealed that his identity has been used in an AI deepfake scam, resulting in at least one victim losing $4 million in digital assets. The scam involved fraudsters from Nigeria who used Melker's name and picture to deceive their targets. The scammers sent a fake driver's license and used Melker's Twitter avatar to create a sense of authenticity. They also conducted video calls on Zoom using AI-generated deepfakes, which appeared highly convincing. Additionally, they spoofed the accounts of Melker's wife and children to further add credibility to their fraudulent scheme.
According to Melker, the scammers used a fake but believable email and a fake driver's license created with the help of artificial intelligence. A crypto trader with the nickname Nebraskan Gooner pointed out that the fake could be easily recognized with a simple Google search, highlighting minor inconsistencies in the address and date format. Despite the high level of sophistication in such operations, this particular attempt was poorly executed.
AI-driven fraud in digital assets continues to gain momentum. In March 2025, analysts reported the discovery of seven new types of fraud schemes that utilized artificial intelligence. In February, it was noted that 2025 would be an important milestone for scammers using AI tools, as new technologies make scams more scalable and accessible. Artificial intelligence is capable of analyzing and collecting data from public sources, helping hackers build detailed personality profiles and create plausible scenarios for social engineering.
Melker himself recognized that the cybersecurity situation in crypto will only get worse over time. Therefore, users of digital assets need to be extremely careful to recognize artificial intelligence when interacting with someone online. Ideally, users should store most of their coin holdings with a hardware wallet. It's also important to ignore any incoming messages on the topic of crypto, as they usually don't lead to anything good. The last mandatory point is not to click on links sent by strangers or old acquaintances.
The story of a well-known representative of the blockchain industry shows that even experienced cryptocurrency investors are not immune to traps. With the growing technological threat, caution remains the user's main weapon. Therefore, it is safer to ignore any offer that tries to seem like a lucrative opportunity to earn money.
