Spanish authorities have arrested six individuals involved in a global AI-driven investment scam that defrauded at least 208 victims out of more than $20 million.

According to a statement by Spanish police on April 7, the fraudsters targeted their victims in up to three waves. Initially, they duped them with a fake investment scheme. Then, posing as investment managers and later as official authorities, they reached out again under the pretense of helping recover the stolen money—for a fee.

The scammers employed deepfake videos featuring well-known national figures to promote fake crypto investment opportunities. They also impersonated financial advisors and sometimes even pretended to initiate romantic relationships to deceive their targets.

Experts have raised concerns about the increasing use of AI in scams. In its February 13 “Crypto Scam Revenue 2024” report, blockchain analytics firm Chainalysis noted that generative AI is enabling fraudsters to scale up and carry out scams more cheaply and efficiently.

The arrests followed an extensive investigation that involved tracking financial flows and analyzing the online activities of the alleged perpetrators. Police have seized assets, including cash and properties, believed to be linked to the fraudulent scheme.

The investigation is ongoing, and authorities are working to identify additional victims who may have been affected by the scam, which reportedly had an international reach.

This case highlights the growing trend of investment fraud exploiting emerging technologies like AI and the continued vigilance required to protect individuals from such sophisticated scams in the digital age.