How scammers use AI to mimic popular creators, sell fake products

Applications of AI


This research report includes images and videos generated in AI created to show you the best way to identify real AI and AI.

This is the fourth part of InvestigatetV's operational series, which explores how AI can affect our daily lives.

Please visit the series' homepage Follow each national release and reports from your local grey media station.

East Tawas, Michigan (InvestigatetETV) – The 84-year-old creator of Tiktok, who built his follow by sharing daily jokes, has become the unconscious face of multiple online scams. These scams use artificial intelligence to steal similarities and voices and sell products under the pretense of false charity.

Having accumulated over 15,000 followers and 150,000 likes in Tiktok, Charles Ray discovered that the con man was using AI technology to create fake videos of him.

The video showed a fake version of him claiming to run a struggle animal rescue, farm and church to sell products ranging from dog slippers to Bible bags.

“I was stupid. I couldn't believe it. It sounds like me,” Ray said after seeing one of the rogue videos.

“It's a scam. Someone has stole my image and my content. They're trying to get your money.

The scheme illustrates the growing trends in AI-enabled fraud that federal agents say are challenging law enforcement agencies across the country.

Multiple fake personas, the same stolen face

The scammers have created numerous fake scenarios using Ray's portrait across multiple Tiktok channels.

One video claims that the AI-generated version of Ray opened dog rescue after retirement, “I'm currently struggling to communicate and keep it open.”

Fake rays promote handmade dog slippers as a way to support non-existent rescues.

Other fraudulent videos show the Ray version of the AI ​​version that claims to run a struggled church, farm, and even koala rescue every time as a way to support these fictional charity causes.

The real Ray, who started posting content to make people smile, said he didn't know how to make slippers and never ran a business or charity featured in fake videos.

The FBI confirms criminal conduct

Ronan Byrne, unit chief of the FBI's Cyber-Response Fraud and Money Laundering Unit, confirmed that using AI to commit fraud constitutes criminal activity.

“Yes, the use of AI images used as jokes and satire is obviously not the case, but using AI to commit fraud is a crime,” Byrne said in an interview at the FBI headquarters in Washington, DC.

Byrne said the FBI receives thousands of complaints every day about AI-related fraud cases, but tracking off the perpetrators is a major challenge.

“That requires a lot of work. Technology and threat actors abroad create potential challenges for investigators,” Byrne explained.

“The scale and speed at which these crimes are currently moving is generally very difficult for law enforcement.”

Our investigation revealed that fraudulent videos direct viewers towards real websites selling real products, but pretend to be falsely charity. The site includes items such as cow slippers, kitten bags, cross necklaces, and dog slippers.

To test the operation, I purchased a pair of Dachshund Slippers for $34.98 using a prepaid debit card.

Two weeks later I got a package that included slippers labeled “Made in China” rather than the handmade items advertised in fake videos.

“What surprised me is that you actually got something,” Ray said as he showed the product that was delivered.

“I feel bad about wasting $40.”

Byrne confirmed that this type of scheme is under the JBI jurisdiction.

How did Tiktok respond?

Despite the criminality of the activity, fraudulent videos last on social media platforms, sometimes generating hundreds of thousands of views over several months.

Ray said he tried to report the fake video to Tiktok, but the social media platforms did not take action.

“They come back and say, 'We've looked into it, and it's not violating the standards of our community.' They don't do anything,” Ray said.

Tiktok did not respond to requests for comment on the fraud or Ray's situation.

Legislative efforts have stagnated

The case has attracted attention from lawmakers who say current law provides inadequate protection against AI-enabled identity theft.

Senator Josh Hawley said the situation shows why the legal framework needs to be updated.

“We must protect the rights of people and their names, their images, their portraits,” Holy said. “We have to be able to communicate to these platforms like Tiktok, like Instagram, to these platforms like YouTube.

Currently, social media companies are not facing legal consequences for hosting such content, Holy confirmed.

Proposed laws like the No AI Fraud Act, introduced in 2024, allow people to sue people who knowingly reveal their likenesses without their consent, but the bill has not made any progress.

Scammers adapt to countermeasures

When Ray posted a video warning his followers about fake content, the scammers adapted quickly by using AI to steal those warning messages.

In one example, after Ray posted a video that stated “someone else was stealing the first part of my video,” the con man created an AI version that began with the same warning before moving on to another fake charity pitch.

“This shelter makes my dream come true. It breaks my heart to see my video being used without others asking,” AI-generated Ray said in the manipulated video.

Ray expressed concern that the fraud could undermine the trust he built alongside his legitimate followers.

“These people come there to hear the joke. No matter how rough it is, but they hear it, they trust me. And they see it, and there's trust there,” Ray said.

Ray is not the only content creator affected by this type of fraud. Investigators discovered several other social media users whose images and videos were stolen and manipulated by AI to promote their products using false charitable claims.

FBI Byrne said people who use likeness without permission should report incidents to the Internet Crime Complaint Center on IC3.gov and contact the platform that hosts fraudulent content.

Consumer warning signs

Experts have identified several red flags that will help consumers identify these scams.

  • No specific names are provided to questionable charities, shelters or rescue organizations
  • Lack of contact information for related websites
  • Without verifiable details, ambiguous or emotional attraction
  • The product is advertised as “handmade”, but in reality it is mass produced overseas

The website where you purchased dog slippers has since been removed, but many other sites advertised through AI-generated approvals remain active and continue to sell the product.

Despite considering removing his channel altogether, Ray decides to continue creating content for his followers while using his platform to raise awareness about AI scams.

“What I want to do is discover this a long time ago: to make people smile. I'm smiling a bit, forgetting all the problems you have and knowing people have problems.”

Put your skills in the test

Can you find AI-generated images in interactive digital games? You can play on the homepage of a series that controls this game and other content.

Please see more from Operation: Incorrect information country series

This is the fourth story in the Manipulation of InvestigatetV: The Misinformation Nation series.

Those who believe their image or likeness is being used illegally, or who have purchased the product based on AI-operated approvals, can report the incident to the FBI's Internet Crime Complaint Center. ic3.gov.



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