Grace Ashiru
Luno, a licensed financial services provider in South Africa and a prominent crypto investment app, is on alert following a recent deepfake scam that targeted one of its employees. This incident underscores the increasing threat of AI-powered impersonation fraud in South Africa, especially in the dynamic cryptocurrency sector, where Luno is actively combating these risks.
The company recently dodged a significant crisis when a deepfake audio message, seemingly from a senior executive, was sent to a staff member via WhatsApp. Although the realistic imitation of the voice and the directive initially raised suspicion, the message was eventually flagged as fraudulent. Luno shared this information with WT, highlighting the advanced nature of these deceptive attacks.
Deepfakes, increasingly sophisticated synthetic media crafted by artificial intelligence, are being weaponized by criminals to deceive individuals and companies, leading to significant financial damage. A notable incident in Hong Kong involved an employee transferring USD 26 million after falling for deepfakes mimicking colleagues, including the company’s chief financial officer, during a video call.
Elon Musk, a prominent tech billionaire, has particularly become a prime figure for fraudsters. Following the launch of SpaceX’s Starship, YouTube experienced an influx of deepfake videos featuring Musk promising huge returns on fraudulent cryptocurrency investments, demonstrating the rapid proliferation and scale of these scams.
Luno, a platform that facilitates the buying, storing, and education about cryptocurrencies like Bitcoin and Ethereum for millions of users across 40 countries, is acutely aware of the rising threat from deepfakes. Given its business model centered around digital assets, Luno is especially vulnerable to such fraudulent schemes.
“Deep fakes are a substantial risk in the cryptocurrency sector,” cautions Johan Hetzel, global head of compliance and anti-financial crime at Luno. He explains that while traditional finance systems allow fraudsters to distribute funds across various institutions, blockchain technology—central to cryptocurrencies—enables crypto service providers to track transactions more extensively than just their customer base. Nonetheless, the main challenge lies in the psychological effects of deepfakes, which can blur the line between reality and fiction.
To address this threat, Luno has formed a specialized team tasked with scouring social media and websites to identify and eliminate fraudulent representations of the company. Over the last year, this initiative has led to the proactive identification and removal of over 2,000 fake social media accounts and nearly 500 deceptive websites that exploited the Luno brand. The company reports takedown success rates of 98% and 87.6% for social media pages and websites, respectively.
“Fraud poses a significant challenge not only to cryptocurrency service providers but also to the broader financial services sector in South Africa,” explains Hetzel. Luno underscores the need for caution to safeguard its users, advising them that if something seems too good to be true, it likely is. The company advocates for users to confirm the legitimacy of any communications and to take their time when making decisions.
Moreover, blockchain technology plays a crucial role in enhancing transparency within the cryptocurrency ecosystem and offers potential in the fight against deepfakes. Its decentralized nature and emphasis on security enable the verification of digital content. This application is evident in the use of non-fungible tokens (NFTs), which record the original creator and current owner on the blockchain, thereby hindering counterfeiting.
However, the struggle against deepfake fraud is expected to continue, especially as AI technology rapidly advances. Luno’s experiences highlight the need for ongoing vigilance and suggest that combating this emerging threat will require a concerted effort from the entire industry.
