Hi Fraud Fighters,

What a mind blowing week. The AI wars are heating up and China’s Deepseek has sent shockwaves through the US stock market, knocking over $1 Trillion in market cap from some of our biggest companies. But is Deepseek all it seems? I don’t know. Some smell something fishy, and others believe there it poses some significant threat to cybersecurity.

Let’s get to this week’s Top Fraud Highlights.

🔥 This Week’s Fraud Highlights🔥 

• 150,000 - That’s the estimated number of trafficked scammers that are now working in 350 different compounds in Cambodia based on recent new report.

• Your AI Digital Identity - Sam Altman wants to link your digital identity to your AI Agents which will one day wander the internet plugging away on task for you like ordering your lunch on DoorDash.

• Wiggin Out - A 61 year old woman in the UK used an array of wigs and disguises to take Citizenship test for other people.

• $100 Million Scam Empire - Police bring down a $100 million scam and gift card empire. Court docs revealed how it all went down.

• Here to stay - ElevenLabs, the voice clone company, is now valued at $3 billion after taking another $250 million in investments. Deepfakes are here to stay.

• Fraud Fighter Fired—Hannibal Ware, the Inspector General of the OIG and one of the most outspoken fraud fighters during the PPP Fraud epidemic, was fired this week, but as evidenced by this letter, he plans to fight back.

• Down the Drain—The Water and Fire Department of Garden City lost 85% of its money to Cyber Scammers who convinced the bank to drain its accounts.

• Another Actress, Lured - Pig butchering scammers, are kidnapping models and actors and forcing them into scam compounds. This week, another actress reveals how she was almost lured in.

• Death Master File—The Social Security Administration’s DMF file helped the Treasury Department recover over $31 million in fraud and improper payments during a pilot, and the amount is projected to reach $235 million annually.

• Subscription-Friendly Fraud: Fraud analysts from various banks are having a lively conversation on Reddit about customers who claim mundane subscription services are fraudulent. 

• ChatGPT Agent Operator - I tested ChatGPT’s new AI agents. They looked impressive, but the results of what it produced were subpar.

• Deepseek. Deep Threat - Deepseek has taken the AI world by storm, but it also represents significant fraud, cyber, and privacy threats that could spell trouble for everyone.

How Did Scammers Pull Off Those Brad Pitt AI Deepfakes? It Is Stupid Simple.

A French woman was conned out of $850,000 by a scammer who impersonated the actor after he sent her deepfake images of him in the hospital.

So, how did the scammers pull off such a con? Nigerian scammers are well-known for using a well-known format. Believe it or not, they use a simple Photoshop tool that virtually everyone uses and is stupidly simple.

Click to Read

Heroic Man Saves Friends Parents From Elaborate HGTV Deepfake Scam

A heroic Reddit user who would not take no for an answer can be credited for saving his friend’s parents tens and thousands of dollars.

After his friend posted a strange-looking video on a group chat, the Reddit user decided to take matters into his own hands and prove it was a deepfake, which he eventually did after many hours.

Click to Read

The 23-Year-Old Who Infiltrated a North Korean IT Worker Operation

A 23-year-old cybersecurity analyst named Aidan Raney infiltrated a North Korean IT worker operation, documenting how the regime exploits U.S. businesses to fund the country’s missile program.

From his home in Wisconsin, Raney engaged with multiple North Korean operatives who all posed as "Ben. " He documented their methods of creating fake resumes, coaching job candidates through interviews, and attempting to gain remote access to corporate systems.

His fascinating investigation revealed how these operations use platforms like Fiverr and professional networking sites to target American companies.

Click To Read

Shockwaves: Blockbuster Ruling Could Significantly Increase Bank Scam Losses

A federal judge may have laid the groundwork for a significant shift in bank liability. He ruled that fraudulent payment orders initiated through online or mobile banking are covered by EFTA, even if they result in wire transfers.

This precedent could send shockwaves through banks' legal and fraud departments. Wire transfers (like Zelle payments) could be subject to customer refunds since Reg E governs them.

Click To Read

Should Police Be Able To Control Your Bank Account If They Suspect A Scam?

They could not save her.

In Singapore, five police officers contacted a woman over the course of a week to warn her she was being scammed. One week later, she had lost all but $600 of her money after sending $650,000 to scammers.

A new bill in the country would give police control over victims' accounts to prevent them from sending money to scammers. What do you think of this?

Click to Read

Bank Recording Reveals How Impersonator Stole Millions From Dodgers Star

“Who am I speaking with?” a fraud analyst asks in the audio clip. “Shohei Ohtani,” the impersonator answers.

“Recently, we’ve come across a trend of fraud and scams, so we have been monitoring the online transactions closely to make sure our clients are not the victim of either,” the agent says. “What is the reason for this transaction?”

This fascinating audio recording provides a behind-the-scenes glimpse into how an impersonator broke into Ohtani’s bank accounts and wired money.

Click To Read

Credit Repair Company Pulled Off Biggest Covid Tax Heist Fraud In History

At first glance, Credit Reset Me Inc., wedged between a pizzeria and a nail salon at 683 Hempstead Turnpike, seemed like countless other credit repair businesses dotting Long Island's commercial strips.

But behind that modest shop was a fraud factory that produced over 8,000 fraudulent applications and pulled off the biggest heist in history - over $600 million in applications, according to the government.

The gang spent $44 million in luxury goods and even dropped a rap song about their exploits - I’m Really Sophisticated (IRS)

Click to Read

Evil Fraudsters Are Filing For FEMA Before LA Homeowners Can

Remember Pablo El Hernandez promising to get people FEMA money for LA fires even if you don’t live in California?

Well, it’s a big deal now, as devastated homeowners across LA are reporting that identity thieves are filing claims for their destroyed homes before they can. Evidently the scammers are looking up addresses and identity information of the destroyed homes and beating them to the punch!

Who Is Behind These Massive Massachusetts Identity Fraud Attacks?

It is one of the hottest and most sweeping fraud trends of 2025. 🔥 

This massive fraud ring, first uncovered by David Maimon of Sentilink in early January in this video, involves stolen identities with specific email and phone patterns. Watch the video for more details.

This week, Socure also published a significant piece on the trend, which they believe is an “attack.” The problem is estimated to affect over 9,100 bank and credit accounts based on IP addresses and time-of-day analysis. Socure also linked it to potential bad actors in China using data from a seven-million-victim record breach in the state.

Scott Ellefson, the Fraud Consulting Manager at Point Predictive, believes the scheme can be traced to a multi-state criminal network that has been operating since 2020 and is tied to the Mexican Cartel. The network's extensive criminal activity includes identity theft, bust-outs, money laundering, insurance fraud, and rental fraud.

Click to Read

Green Mirage Scam Spreading Across Hundreds Of Impersonated Mortgage Lenders

Fraud operatives posing as mortgage lenders are calling homeowners from spoofed phone numbers and scamming victims out of thousands. The FCC has issued an urgent warning to consumers and given the scammers the moniker “Green Mirage”.

The scammers have impersonated over 400 mortgage lenders. They contact borrowers who may have previously filed for mortgage relief, threaten them with foreclosure, and then transfer them to “attorneys” who collect payments.

Click to Read

Another AI Startup Bites The Dust Due To Founder Fraud

AI startup Game On seemed to be the next big thing. But all was not as it seemed. The founder told investors the company was generating upwards of $100 million a year in revenue, in reality they were only generating $500,000.

When the board got access to their bank accounts, they found just .37 cents in an account the founder claimed had over $11 million.

Click To Read

Pig Butchering Scam Ops Are Getting So Bad The Only Option Is To Cut Off Power

The government of Thailand is getting ready to pull the switches and cut off all power in Myanmar as a last-digit effort to stop the proliferation of scam operations in the area.

The scam bosses are highly resilient against efforts like this. Last year, after the Telco companies cut off all telecommunications access, the scammers simply used Elon Musk’s Starlink satellite services to continue their scam communications.

Click To Read

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