The authorities in Spain have arrested six individuals who have carried out a worldwide AI fraud in investment participation, which stole over $ 20 million of at the least 208 victims.
The fraudsters would cheat the victims as much as thrice. After the fraudsters had stolen a primary sum through the investment fraud, they contacted the victims twice and camouflaged themselves as investment managers after which as an authorities to reclaim the stolen means for a fee, the Spanish police said in a press release on April 7.
The fraudsters used deep papers from “national personalities” that promised high returns for cryptoinvestment, and would occasionally represent a financial advisor and even provide romantic interest within the victims.
Experts warn frauds of a rise in AI amplifies. The Blockchain Analytics company Chainalysis announced in its report on Crypto fraud in 2024 on February 13 that generative AI “acts more scalable and inexpensive for bad actors”.
🚩 six people to cheat greater than 19 million euros with #artificial intelligence
🔴 They entertained the victims through advertisements that were manipulated with #ia to take a position in allegedly very profitable products pic.twitter.com/rmrdgbpoyz.
– National police (@Policia) April 7, 2025
“The victims weren’t chosen by accident; as an alternative, algorithms chosen those whose profiles matched the searches of the cybercriminals,” said the Spanish police.
“After choosing their victims, they’ve set promoting campaigns on the web sites or social networks that used them and offered them cryptocurrency investments with high returns and no risk of lack of assets – investments that obviously turned out to be fraud.”
When the victims couldn’t withdraw the funds, most of them found that, in accordance with the Spanish police, it was a fraud. However, the trick didn’t end there.
Fraudsters would again trick follow-up frauds
The cybercriminals would then turn back to the victims, output as an investment manager and claim that the stolen means were frozen and may very well be reclaimed in the event that they paid for a deposit.
“The victims, who hoped to finally win back their money, made the deposit without realizing that that they had been cheated again,” said the Spanish police.
The fraudsters would then turn to the victims a 3rd time, this time as a Europol agent or lawyer from the United Kingdom who offered to return the stolen means if the victim paid the corresponding taxes within the country through which it was blocked.
The Spanish authorities arrested six people involved within the syndicate and accused them of fraud, money laundering and falsification of documents in a criminal organization.
During a robbery on the alleged guide behind the fraud, the Spanish authorities confiscated quite a few mobile phones, computers, hard drives, a simulated weapon and extensive documentation.
In other countries, several people connected to the property were also identified, and the syndicate has supposedly created numerous fake corporations to channel the stolen means.
“In addition, the members of the organization used several false identities. In the case of the guide, for instance, he used greater than 50 different identities,” said the Spanish police.
