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Crypto Investor Warns Of $4M AI Scam Using His Identity

Coin WorldWednesday, Apr 23, 2025 11:16 pm ET

1min read

Crypto investor and advocate Scott Melker, widely recognized as 'The Wolf Of All Streets,' has issued a warning about scammers impersonating him to defraud unsuspecting victims. Melker, who hosts The Wolf Of All Streets podcast, revealed that his identity, including his face and name, has been used by scammers to deceive at least one individual out of $4 million. The scam was orchestrated by a group that utilized a fake driver’s license and a convincing-looking email account to impersonate Melker. The scammers also employed AI-generated deepfakes to conduct Zoom calls, further convincing their victims of the authenticity of their claims. Melker reported that the scammers had even spoofed accounts of his wife and children to support their identity confirmation.

The sophistication of the scam was highlighted by the use of AI to generate the fake ID and the convincing nature of the email account. Melker expressed his concern over the increasing sophistication of these scams, noting that the technology used by the scammers is becoming more advanced. He mentioned that the scammers had sent a fake driver’s license to one of his clients, using his X avatar as the photo. The scammers also conducted Zoom calls with AI-generated deepfakes, which were described as "sophisticated."

Crypto adviser and trader pointed out that the fake ID used by the scammers could be easily spotted with a quick Google search. He noted that there were subtle discrepancies in the address and date formats, which should have raised suspicions. Despite the sophistication of the operation, he was surprised by the obvious flaws in the fake ID.

The rise of AI-generated scams is a growing concern, with authorities and experts warning about the increasing use of AI in fraudulent activities. In March, the Department of Justice warned about new types of crypto scams that involved AI. In February, it was predicted that 2025 would see a significant increase in AI scams, stating that generative AI is making scams more scalable and affordable for bad actors. It was also reported that bad actors are using AI to enhance their scams, making them more convincing and harder to detect.

Melker lamented the escalating threat of AI-generated scams, expressing his concern that the situation will only get worse. He emphasized the need for increased vigilance and awareness among crypto investors and advocates to protect themselves from such sophisticated scams. The use of AI in fraudulent activities is a growing concern, and it is essential for individuals to be aware of the potential risks and take necessary precautions to safeguard their assets.

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