Unsuspecting teacher falls victim to sophisticated investment scam
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Disclaimer: The names in asterisks was changed in this context to protect the privacy and confidentiality of the individual involved.
The digital age has brought many wonders, from the ability to connect with loved ones across the globe to the convenience of online banking and shopping.
However, it has also opened a Pandora's box of sophisticated scams that can catch even the most vigilant people off guard.
The story of Jake*, a Melbourne-based teacher, serves as a chilling reminder of the dark side of technology and the importance of staying alert in the face of increasingly cunning cyber threats.
Jake*'s ordeal began with what seemed like a golden opportunity.
A deep fake video of Australian singer Nick Cave, whom Jake* greatly admired, appeared on social media.
The video endorsed an investment scheme that promised substantial returns, convincing Jake* to invest his hard-earned money.
Deepfake refers to highly realistic video or audio recordings that use artificial intelligence and machine learning to manipulate or generate visual and audio content with a high potential to deceive.
The result is a person appearing to say or do something they did not say or do, which can be used maliciously to spread misinformation or, in Jake*'s case, to perpetrate scams.
‘I had a deepfake experience with Nick Cave, and the video ends up with him saying he made a couple of extra thousand dollars in the bank by doing nothing,’ Jake* said.
‘I respect him greatly as an artist, so I’m, of course, thinking sh*t that’s put the icing on the cake.’
He was bombarded with calls and messages from various individuals, all part of a coordinated effort to defraud him.
One of these individuals, a seemingly trustworthy man named Max, played the long game.
Over time, he built rapport with Jake* and convinced him to invest more money.
‘I was bombarded with a tsunami of different people trying to get a hold of me; it came from everywhere. I had people everywhere trying to get me on board,’ he said.
‘What happened in the end is I started talking to a young guy named Max. It’s this case of right time, right place—absolute bullseye.
‘There I was looking for something, and he happened to be at the right place at the right time.’
‘He didn’t seem pushy and seemed like someone I felt reasonably comfortable with.’
The scam took a turn for the worse when Jake* attempted to withdraw his funds.
He was informed that his account had been flagged for potential money laundering and that he needed to make a deposit to prove his legitimacy.
‘As you put in more money, the debt you are chasing grows, and you end up in a vicious circle,’ Jake* said.
‘And you get to a point where it is not funny anymore. You are trying to chase more money.’
‘For us, it got to the point where we were trying to chase upwards of $90,000. It becomes frightening.’
This led to a vicious cycle of investing more money to recover his growing 'debt,' which only plunged him deeper into financial ruin.
‘They told me. Unfortunately, you have fake coins; they are worthless, and at that point, I knew I had lost $130,000, and my stomach hit the floor, and my brains exploded,’ Jake* cried.
‘I was in a situation where I didn’t know what to do.’
The realisation of the scam-hit him hard when a Sydney company confirmed that the cryptocurrency coins he had been trading were fake and worthless.
This revelation was devastating, not only financially but also emotionally, as it caused a rift within his family and left him feeling deeply embarrassed and foolish.
‘You get two different kinds of people who put their arms around you and say, “This is the worst thing in your life. Is there anything I can do?” And others who say, “You are pretty f****** s*****, aren’t you”?’
‘I just want to try and warn people that if it is too good to be true, then get the hell out,’
Scams, particularly those involving fake investments, have proliferated on social media platforms.
Scamwatch reported a loss of $43.4 million in the first eight months of the year, almost $30 million of which was related to fake investment scams.
Deepfake technology has created fraudulent images of well-known Australians, including David Koch, Gina Rinehart, Anthony Albanese, Larry Emdur, and Guy Sebastian, to lure unsuspecting victims into scams.
In other news, Andrew lost $13,000 to a scammer on dating apps posing as a cryptocurrency investor.
Going by 'Zoe,' the scammer built trust with Andrew over several weeks before persuading him to invest through an online platform. You can read more about it here.
Have you seen something online that seemed too good to be true? How do you protect yourself from scams online? Let us know in the comments below.
The digital age has brought many wonders, from the ability to connect with loved ones across the globe to the convenience of online banking and shopping.
However, it has also opened a Pandora's box of sophisticated scams that can catch even the most vigilant people off guard.
The story of Jake*, a Melbourne-based teacher, serves as a chilling reminder of the dark side of technology and the importance of staying alert in the face of increasingly cunning cyber threats.
Jake*'s ordeal began with what seemed like a golden opportunity.
A deep fake video of Australian singer Nick Cave, whom Jake* greatly admired, appeared on social media.
The video endorsed an investment scheme that promised substantial returns, convincing Jake* to invest his hard-earned money.
After an initial investment, Jake* was misled into believing his funds had increased, prompting further investment before realising it was a scam. Credit: Shutterstock
Deepfake refers to highly realistic video or audio recordings that use artificial intelligence and machine learning to manipulate or generate visual and audio content with a high potential to deceive.
The result is a person appearing to say or do something they did not say or do, which can be used maliciously to spread misinformation or, in Jake*'s case, to perpetrate scams.
‘I had a deepfake experience with Nick Cave, and the video ends up with him saying he made a couple of extra thousand dollars in the bank by doing nothing,’ Jake* said.
‘I respect him greatly as an artist, so I’m, of course, thinking sh*t that’s put the icing on the cake.’
He was bombarded with calls and messages from various individuals, all part of a coordinated effort to defraud him.
One of these individuals, a seemingly trustworthy man named Max, played the long game.
Over time, he built rapport with Jake* and convinced him to invest more money.
‘I was bombarded with a tsunami of different people trying to get a hold of me; it came from everywhere. I had people everywhere trying to get me on board,’ he said.
‘What happened in the end is I started talking to a young guy named Max. It’s this case of right time, right place—absolute bullseye.
‘There I was looking for something, and he happened to be at the right place at the right time.’
‘He didn’t seem pushy and seemed like someone I felt reasonably comfortable with.’
The scam took a turn for the worse when Jake* attempted to withdraw his funds.
He was informed that his account had been flagged for potential money laundering and that he needed to make a deposit to prove his legitimacy.
‘As you put in more money, the debt you are chasing grows, and you end up in a vicious circle,’ Jake* said.
‘And you get to a point where it is not funny anymore. You are trying to chase more money.’
‘For us, it got to the point where we were trying to chase upwards of $90,000. It becomes frightening.’
This led to a vicious cycle of investing more money to recover his growing 'debt,' which only plunged him deeper into financial ruin.
‘They told me. Unfortunately, you have fake coins; they are worthless, and at that point, I knew I had lost $130,000, and my stomach hit the floor, and my brains exploded,’ Jake* cried.
‘I was in a situation where I didn’t know what to do.’
The realisation of the scam-hit him hard when a Sydney company confirmed that the cryptocurrency coins he had been trading were fake and worthless.
This revelation was devastating, not only financially but also emotionally, as it caused a rift within his family and left him feeling deeply embarrassed and foolish.
‘You get two different kinds of people who put their arms around you and say, “This is the worst thing in your life. Is there anything I can do?” And others who say, “You are pretty f****** s*****, aren’t you”?’
‘I just want to try and warn people that if it is too good to be true, then get the hell out,’
Scams, particularly those involving fake investments, have proliferated on social media platforms.
Scamwatch reported a loss of $43.4 million in the first eight months of the year, almost $30 million of which was related to fake investment scams.
Deepfake technology has created fraudulent images of well-known Australians, including David Koch, Gina Rinehart, Anthony Albanese, Larry Emdur, and Guy Sebastian, to lure unsuspecting victims into scams.
In other news, Andrew lost $13,000 to a scammer on dating apps posing as a cryptocurrency investor.
Going by 'Zoe,' the scammer built trust with Andrew over several weeks before persuading him to invest through an online platform. You can read more about it here.
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