Celebrity Deepfakes Fuel Multi-Million Dollar Instagram Scam Operation in Brazil

AI Used To Create Celebrity Deepfakes In Multi-Million Dollar Instagram Scam

Brazilian supermodel Gisele Bundchen has been unwittingly featured in a sophisticated fraud operation. According to police investigators, a group of suspected scammers in Brazil utilized Instagram advertisements containing deepfakes of Bundchen and other celebrities, reportedly generating millions through online deception.

This week, authorities apprehended four individuals linked to the scheme and froze assets across five Brazilian states. The investigation uncovered over 20 million reais ($3.9 million) in suspicious transactions identified by the federal anti-money laundering agency COAF.

The operation represents one of Brazil's initial efforts to combat the increasing use of artificial intelligence technologies for manipulating celebrity images and videos in online fraud schemes.

In June, Brazil's Supreme Court established that social media platforms can be held accountable for criminal advertisements posted by users if they fail to promptly remove such content, even without judicial orders.

Meta, the parent company of Instagram, stated that their policies prohibit "ads that deceptively use public figures to try to scam people," and that they remove such content "when detected." The company further emphasized its investment in "specialized systems to detect celeb-bait, trained review teams, scam prevention tips, and reporting tools for potential violations."

When contacted, Bundchen did not respond to comment requests. However, she had previously cautioned her followers about fraudulent videos circulating on social media that misappropriated her image for scam purposes.

The investigation announced this week by police in Rio Grande do Sul began in August 2024 after a victim reported being deceived by an Instagram advertisement featuring a manipulated video of Bundchen promoting skincare products.

Another fraudulent advertisement utilized the supermodel's likeness to advertise a suitcase giveaway, where consumers paid shipping fees for merchandise that was never delivered.

"We identified that the criminal group conducted numerous other scams, involving deepfakes of additional celebrities and fraudulent betting platforms," revealed Eibert Moreira Neto, who heads Rio Grande do Sul's cybercrime division, in a statement to Reuters.

Investigators are pursuing money laundering and online fraud charges. They noted that most victims lost relatively small amounts, typically under 100 reais ($19), and consequently did not report these incidents.

"This created a perverse situation where criminals benefited from a form of 'statistical immunity.' They were aware most people wouldn't report them, allowing them to operate at scale without concern," explained Isadora Galian from the cybercrime unit.