Fake celebrity scams: How to spot and avoid them

Australians have lost millions of dollars to fake investment scams, which sometimes use well-known celebrities to try to hook their next victim. Here’s how to keep yourself and your loved ones safe.

While the idea of Keanu Reeves or Nicole Kidman spruiking a ‘get rich quick’ investment product may seem a bit farfetched, scammers are finding ways to become more convincing with their fake celebrity messaging in an age of artificial intelligence (AI).

In fact, the Australian Consumer and Competition Commission (ACCC) has warned that deepfake scams are capturing victims across the country, with losses totalling more than $8 million last year.

ACCC Deputy Chair Catriona Lowe said there are numerous examples of social media-based scams that have been costly for victims.

“We know of an Australian man who lost $80,000 in cryptocurrency after seeing a deepfake Elon Musk video interview on social media, clicking the link and registering his details through an online form,” Lowe said. “He was provided with an account manager and an online dashboard where he could see his investment supposedly making huge returns. But when he tried to withdraw the money, he was locked out of his account.”

How these scams work

The recently established National Anti-Scam Centre has identified several characteristics common to these fake celebrity scams:

• Generally, they try to hook victims on social media with fake celebrity endorsements.
• If someone clicks on the link to the scam, they’re enticed into setting up a fake trading account, which enables the scammer to chat to them.
• The scammer asks for an access fee – often around $250.
• The scammer encourages the victim to download an app with a fake dashboard showing great investment returns.
• The victim is encouraged to invest more.
• When the victim tries to access the returns, they are locked out of the account or asked to pay additional fees.

How to protect yourself and your loved ones

While many members of the Police Bank family know how to spot a scam, spreading awareness among family and friend networks can help protect others, too.

Here are a few tips from Scamwatch to avoid fake celebrity investment scams:

• Be careful about any social media investment opportunity and never give out financial details on social media.
• Conduct a Google search if something doesn’t seem right.
• Check out the Australian Securities and Investments Commission’s Investor Alert list, which features known scams.

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