AI scam uses fake crypto influencer ID to steal $4 million

Crypto investor and podcast host Scott Melker, known as “The Wolf Of All Streets,” revealed on April 23 that scammers used artificial intelligence (AI) to impersonate him, leading to a $4 million loss for at least one victim.

Melker shared that a Nigerian group had used his name and image to deceive clients, creating a fake driver’s license with his photo and using AI-generated visuals in Zoom calls to make the scam more convincing.

“They’ve apparently scammed a number of people,” Melker explained, noting that the group even spoofed accounts of his wife and children to make the scheme more believable.

Technical analysts known as “TheChartGuys” reported a similar incident in which scammers used AI to replicate a victim’s voice, resulting in a $5,000 loss.

Crypto adviser “Nebraskan Gooner” remarked that although the fake ID had detectable flaws, the sophistication of these scams, facilitated by AI, is raising serious concerns.

Authorities have noted a rise in AI-driven scams.

In March, California’s Department of Justice identified seven new types of crypto scams involving AI.

Meanwhile, Chainalysis warned that generative AI would likely lead to a surge in scams in 2025, as these technologies make fraudulent activities more scalable and affordable.

Microsoft has also reported that cybercriminals are using AI to gather information on potential targets, making social engineering tactics more convincing.

“It’s going to get exponentially worse, I would imagine,” Melker warned, highlighting the growing threat posed by AI-enabled scams in the crypto sector.