AI-powered investment fraud schemes targeting Gulf markets

AI-powered investment fraud schemes combining deepfake videos, WhatsApp groups, and fake cryptocurrency platforms could spread to Gulf markets, according to cybersecurity firm Group-IB. The region's rapid growth in retail investing and digital assets makes it a potential target for these sophisticated scams, Biometric Update reports.

Group-IB has identified two primary fraud models, GoldBull and CoinLure. GoldBull operates a "pump and dump" scam using legitimate stock markets, while CoinLure utilizes a network of over 200 fake cryptocurrency investment platforms built on shared templates. The GCC market is particularly vulnerable due to the widespread use of WhatsApp for business, high crypto adoption rates, a growing retail investor base, and the cloning of regulated firms' branding and license numbers.

Group-IB advises GCC stock market participants to exercise caution with investment opportunities promoted on WhatsApp and Telegram, to be skeptical of video endorsements, and to be wary of platforms requiring payment before withdrawals or exclusively accepting cryptocurrency. This trend highlights the increasing integration of deepfakes and social media into organized financial crime, with global investment scams generating billions in losses annually.

Source: Biometric Update