07 August 2024

Deepfake video scam warning: fake news stories, political endorsements

Image of Fake Politician Story Main

A public warning about new look online investment scams has been issued today, after a surge in complaints from New Zealanders tricked into clicking on fake advertisements featuring 'celebrity endorsements' – some of which use deepfake videos of New Zealand political figures.  

Read the latest FMA warning here
 
This scam uses fake news stories, spread through multiple websites and advertisements, with the names of investment schemes and websites used to promote the scam changing frequently.

Some recent examples include images of the New Zealand Prime Minister Christopher Luxon, with accompanying text falsely claiming, 'pensions payments will be cancelled'. This is not true and designed to alarm readers into clicking on links included with the content.  

FMA Director responsible for Scam Prevention and Co-ordination Peter Taylor said the recent imposter digital content seen by the FMA was very sophisticated.

"It can be very difficult to detect that some of these news stories are fake, they have the exact look and feel of legitimate online news content," he said. "But they are actually paid advertisements, used to alarm people, gain attention and get them to click on a link for more information."

Fake news stories are often created and used by scammers as a way of giving their trading platforms a mirage of legitimacy.  

Some of the victims have only lost relatively small amounts of money – but they have given personal details to scammers, and now risk being contacted again in what are known as 'recovery scams'.

Many of the people caught up in the scams think they have made money trading through online platforms, but can't get any money out without being asked to pay fees and phony 'taxes'.

"These latest scams are pretending to be about the New Zealand superannuation regime, scaring people into thinking they may be losing retirement income," says Peter Taylor. "The use of political leaders faces and deepfake video to boost these claims is a particularly worrying development."

The FMA recently spoke to a New Zealand woman who had clicked on one of these fake news stories, and found herself caught in the net of an online investment scam. 

Read her full story here

"A Facebook ad caught my eye," she said. "It had an item about Jacinda Ardern and her husband Clarke Gayford, it had a byline and I think a screenshot I wonder what's that all about? And then clicked on it to read it."  

She followed the link, which took her to an advertisement for a crypto trading site. She checked out the company and its website – it seemed to represent a legitimate broking firm. She joined up, depositing $420 via her credit card.    

"I read through the article – maybe I skimmed it all too quickly, I didn't really register the figures being quoted, there was no real context for them – but it did talk about the returns and how they'd made money - there were many red flags now that I think about it, but hindsight is a wonderful thing!" 

 

Here's how the scam works: 

  • Scammers draw in victims through advertisements placed on social media platforms and news websites. There are several variations of these advertisements. Some ads:
    • Show an image of a politician next to a fictional quote about a new investment opportunity. E.g., "According to Christopher Luxon, all citizens of New Zealand can officially retire at the age of 45!".
    • Contain generic images, with a headline designed to promote fear about the stability of New Zealand pensions. E.g., "PENSION PAYMENTS WILL BE CANCELLED IN THE NEW ZEALAND!".  
    • Feature deepfake videos of politicians, including New Zealand Deputy Prime Minister Winston Peters. These faked videos show the politician being interviewed about a new investment opportunity which they have invested in personally, or which is claimed to be endorsed by the government.  
  • These advertisements link to fake news articles featuring false quotes and endorsements from politicians, usually promoting an investment platform. These articles are often made to appear as though they are being published by legitimate New Zealand media organisations.
  • These fake news articles have links to other websites advertising investment platforms or promoting educational materials about investments. The websites include registration forms, where potential victims are prompted to enter their contact details.  
  • Scammers will then contact the victim claiming to be an investment broker and give instructions for investing through the platform. Victims are encouraged to make a small investment at first (around US$250/NZ$420). Requests for larger investments will likely follow. 

 

Use extreme caution when engaging with social media advertisements or links in news sites that include images, videos or quotes from politicians promoting investment opportunities.  

Do not click on these ads, and do not enter your personal information into these websites.  

If you have been contacted by a scammer after entering your personal information into one of these websites, do not make any payments or transfer any money.  

What to do if you think you have been scammed?

  1. Contact your bank immediately. Ask if a transaction reversal is possible. If you sent money using another payments service provider, ask them to trace the funds. 

  2. If you have downloaded remote access software on the instructions of the scammers, immediately contact an IT professional to have your device checked for malware. If you have accessed your bank account or other payment systems while the remote access software was operating on your device, report this to the relevant account providers. 

  3. If you keep getting phone calls from scammers, report them to your telecommunications provider. 

  4. If you are getting spam emails and text messages, report these to the Department of Internal Affairs here: 

  5. Tell a trusted relative or friend what has happened. They may help you see the situation more clearly, help you deal with the scammers, and suggest what to do next.  

  6. Contact Victim Support on 0800 842 846. They can provide free emotional and practical support and information

Top image: an example of fake news stories designed to get people clicking onto a scam trading platform.