Rise of Celebrity Deepfakes in Crypto Scams
Digital platforms continue to be inundated with deepfake videos of well-known personalities, which are being utilized to promote fraudulent cryptocurrency schemes and various scams. Recent data from Which? reveals that in the first half of the year, banks reported a staggering £98 million lost to investment fraud, highlighting the growing trend of scams that leverage the likeness of celebrities. The Advertising Standards Authority (ASA) identified celebrity deepfakes as the most prevalent form of scam advertisement in 2024.
Investment Scam Losses Surge
According to new statistics from UK Finance, the losses attributed to investment scams skyrocketed to £98 million in the first six months of 2025, marking a 55% increase compared to the previous year. Data from Which? corroborates this trend, with over 200 reports of investment scams submitted to their Scam Sharer tool in 2025, nearly half of which originated from online platforms or social media. Among these reports, a former police officer recounted a harrowing experience of losing thousands of pounds after encountering a fabricated BBC article regarding cryptocurrency trading on Facebook.
Social Media as a Scammer’s Playground
Fraudsters are increasingly utilizing social media as a primary avenue for their schemes. They amplify their reach by purchasing advertisements on major platforms like Meta, which encompasses Facebook, Instagram, and WhatsApp, as well as Google, the parent company of YouTube. Alarmingly, there are currently no established mechanisms for these tech giants to compensate victims of scams that occur on their services. Of the 203 individuals who reported investment scams from January to mid-October, nearly half (48%) encountered these scams online or via social media, while 34% received scam calls, indicating a possible link to prior online interactions. Other avenues such as email (8%), messaging apps (4%), letters (3%), and text messages (2%) were far less frequently reported.
The Financial Toll of Online Scams
The financial impact of falling victim to these scams can be devastating. Victims who encountered scams online or through social media reported an average loss of £11,865, with one individual losing an astonishing £162,000. This particular victim was misled by what he believed was a legitimate BBC article on Yahoo promoting a company named ‘RoxoFX’, which has since been flagged as a potential scam by financial regulators. He described how he was initially encouraged to invest small amounts, only to be persuaded to invest significantly more after being convinced of the scheme’s legitimacy.
Fake News Articles Amplifying Fraud
Scammers frequently fabricate news articles to promote their fraudulent investment opportunities. Recently, Which? identified eight deepfake crypto scam videos on YouTube, all of which were removed following reporting. Despite assurances from YouTube that it prohibits phishing content, scammers continue to exploit readily available AI tools to create convincing images, audio, and video imitations of prominent figures. Notable personalities targeted by these scams include Martin Lewis, Prime Minister Keir Starmer, and others. In one instance, a bogus BBC story circulated on Facebook, purportedly featuring Martin Lewis promoting an investment opportunity that turned out to be entirely fictitious.
Meta’s Advertising Dilemma
In response to the prevalence of scam advertisements, Which? approached Meta to inquire about their failure to prevent scammers from exploiting their advertising services. Although Meta did not directly address the specific incidents, they provided a general overview of their approach to combating fraud. They acknowledged the need for more stringent checks on advertisers, particularly those associated with accounts that have been inactive for extended periods. Media research firm Fenimore Harper reported that a significant percentage of Meta advertisements related to Prime Minister Keir Starmer were fraudulent, showcasing the scale of the issue.
Personal Stories of Loss and Deception
Karen, a former police officer from Belfast, shared her ordeal of losing £2,350 after falling prey to celebrity deepfake advertisements. She was initially drawn in by a Facebook ad featuring Keir Starmer and Piers Morgan discussing investment bonds, which led her to provide her contact information. Soon after, she was contacted by individuals posing as bond traders who convinced her to invest in cryptocurrency. Despite warnings from her bank, Karen ultimately lost a significant sum, illustrating the emotional manipulation used by scammers to exploit vulnerable individuals.
Challenges in the UK Payments System
Although Halifax attempted to alert Karen about potential scams during her transactions, the warnings failed to break the spell of the scam. The situation escalated when the scammers’ greed pushed her to seek assistance from her bank and the police. While she managed to recover some funds from her initial credit card payments, the bank declined to reimburse the substantial amounts lost via bank transfers, citing regulations that did not apply to her case. After escalating the issue, Halifax agreed to cover her losses.
Need for Stronger Fraud Regulations
The scam advertisements encountered are likely to fall under the purview of the Online Safety Act (OSA); however, only certain elements of this legislation are currently active. Ofcom has delayed the release of draft regulations aimed at addressing scam advertisements, with full protections not expected until 2027. This gap in regulation leaves a significant portion of scams, particularly those disseminated through paid advertisements, unprotected. In light of these delays, Which? is urging the government to establish a firm deadline for Ofcom to implement necessary codes of practice and ensure that upcoming fraud strategies include legislative measures to hold large technology companies accountable for the fraud that proliferates on their platforms.
