Security Researchers Issue Warning Over Fake AI Gambling Apps

  • AI-generated voices in the fake apps make them seem trustworthy
  • The apps do not allow users to gamble, but simply steal their money and personal data
  • Cybersecurity researchers have warned users to never download third-party APK files
AI computer warning illustration
Gamblers have been warned over a new scam involving fake betting apps which steal money and financial data from users. [Image: Shutterstock.com]

Scam warning issued

Security researchers have issued a warning about the risk of AI fake betting scams targeting online gamblers.

the scam directs users to download fake gambling apps, which then siphon both data and money

The Group-IB CERT team of cybersecurity researchers discovered a global fraud ring involving over 1,000 different websites and 500 adverts targeting people online. The scam directs users to download fake gambling apps, which then siphon both data and money from the victims.

The ads began targeting users in Egypt but have rapidly exploded thanks to AI technology vastly reducing the cost to roll out the scam into other regions.

Rapid growth

“While the majority of the ads detected are focused on Egypt,” the report says, “they have also been spotted targeting various regions, including the Cooperation Council for the Arab States of the Gulf (GCC), Europe, and Asia, using the same methods but different languages.”

The fake apps have proliferated thanks to extensive use of AI voice technology, which helps the apps seem legitimate and local in several different regions.

one of the key tactics used by these scammers is the use of AI-generated voices in different languages”

“The momentum of such scams have rapidly increased, with scammers continually expanding into new markets,” the report continued. “One of the key tactics used by these scammers is the use of AI-generated voices in different languages, making the ads seem local and trustworthy, regardless of where the scam is being carried out.”

In addition to impersonating high-profile local financial and gambling organizations, the apps also proliferate through swathes of fake reviews, with the report warning: “Scammers flood social media platforms and fake review sites with fabricated success stories to enhance the perceived legitimacy of their fraudulent apps.

“These fake reviews often include detailed narratives, screenshots, and even photos of ‘successful’ players, creating the illusion of a highly profitable and trustworthy game.”

Security advice

The advertisements have proliferated widely across social media platforms, taking advantage of their low cost to deploy and increasing lack of vetting for ads on platforms such as X, formerly Twitter.

Across the case studies, IB found that users had suffered losses of up to $10,000, not including the potential future value of lost personal data which could be used to commit identity theft and other acts of fraud.

IB warned individuals to avoid untrusted downloads and never install third-party APK files

In order for users and businesses to protect themselves against the attacks, IB warned individuals to avoid untrusted downloads and never install third-party APK files without going through an official portal like Google Play or the App Store. Additionally, users were advised to avoid too-good-to-be-true promises, and to verify the authenticity of the app.

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