AI-driven investment fraud network dismantled in Türkiye, $500 million laundered

A sophisticated investment fraud network leveraging artificial intelligence (AI) technology to deceive victims has been dismantled in Türkiye.

The operation, which spanned 28 provinces with its epicenter in Istanbul, led to the detention of 72 suspects involved in the scheme, Caliber.Az reports citing Turkish media.

The fraudsters used AI to create convincing fake investment websites, which promised high returns to unsuspecting victims. These sites, designed to appear legitimate, manipulated potential investors through a combination of psychological tactics and digital technology. The perpetrators used advanced AI tools to generate content and manage their fraudulent platforms, making the scam even harder to detect.

In addition to the AI-generated websites, the fraudsters set up call center-like operations, where they contacted victims using open communication lines and VoIP systems, ensuring their identities remained concealed. By exploiting these technologies, the criminals were able to maintain a deceptive and elusive presence, further ingraining the illusion of legitimacy in their victims.

A financial investigation revealed that the criminals managed to channel illicit funds totaling around $500 million. These proceeds were funneled through 41 shell companies and ultimately transferred to a cryptocurrency exchange, where the criminals attempted to launder the money and obscure its origins.

The scope and scale of the fraud highlight the increasing threat posed by the intersection of AI technology and financial crime. Authorities have vowed to strengthen their efforts to combat such schemes, which continue to evolve as technology advances. The operation's success in dismantling the network is seen as a significant step in curbing the growing menace of AI-assisted financial fraud.

The Turkish authorities continue their investigation, with more arrests expected as they track the full extent of the operation's reach and uncover further layers of the fraudulent network.

By Vafa Guliyeva