SEC issues advisory vs deepfake scams

THE Securities and Exchange Commission (SEC) has issued a warning to the public against fraudulent investment schemes that use deepfake technology to falsely associate with well-known figures, including JG Summit Holdings Inc. President and CEO Lance Gokongwei.

The SEC noted that scammers were circulating manipulated videos and audio recordings on social media platforms that falsely showed Gokongwei endorsing investment schemes involving cryptocurrency, foreign exchange trading and other digital assets.

“These deceptive materials have been circulating in social media platforms, aiming to mislead individuals into investing in nonexistent or illicit ventures,” the SEC said.

The victims are reportedly tricked into investing in an electronic platform registered in Nicosia, Cyprus, and are instructed to provide credit card numbers and the one-time passwords sent to their mobile phones.

Once the victims attempt to withdraw funds, they lose all contact with the supposed online agents.

The SEC strongly advised the public to “avoid interacting with suspicious advertisements, websites or social media accounts that claim to offer investment opportunities endorsed by popular personalities.”

“To be secure, always check with the SEC to confirm the legitimacy of the offering, of the offeree and of the security or investment product being offered,” it added.

It urged people to contact the SEC’s Enforcement and Investor Protection Department for concerns or to report scams involving deepfake videos or audio recordings.