Scammers weaponising deep fake videos are the biggest winners out of AI, says Barefoot Investor

For all the hype around AI, Scott Pape says the big winners are scammers who have weaponised deepfake videos on people like him to con victims out of their life savings.

My father still washes the dishes by hand each night because he doesn’t ‘trust’ the dishwasher.

(And my parents have had a dishwasher for 30 years. How’s that for staying power?)

The other night, while he was doing the dishes, I showed him a Facebook video of me enthusiastically promoting a scam trading program, calling it an “exceptional financial collaboration”.

As he watched I could see his old soap suds circling the drain:

It sure looked like his son. It sure sounded like his son. What the heck was going on?

I explained to him that it was a deep fake video … possibly the first one he’d ever seen.

“Was it the bloody Russians?” he asked innocently.

“No idea,” I replied. All we knew was that someone had taken footage of me from an old interview on Sky News and manipulated it into something very weird.

See, for all the hype of artificial intelligence, so far the big winners have been the scammers, who have weaponised deep fake videos and voice cloning to systematically con tens of billions of dollars a year from victims across the globe.

There are now 46 million cyber attacks launched each day, and many of them are targeted at financial institutions, according to a report in the Financial Times.

That explains why the world’s biggest bank, JP Morgan, spends $23bn a year on technology, and employs more engineers than Google or Amazon, largely to stop cyber crooks.

And all this has left me wondering whether the dinky little credit union I bank with (which still has biros chained to the desk) will have the budget to fight the hackers and keep me safe.

(Annoyingly, after a career of bashing the Big 4 banks, it’s dawning on me that perhaps they’ll be some of the only institutions who will be able to afford to build an AI army.)

And what about my deep fake problem?

Well, when I reported it to Facebook, they called and said they were immediately dispatching a crack team of ninjas to the Kremlin to duke it out with the Ruskies.

Yeah, nah.

They didn’t even bother responding.

Yet even if they did bother to shut down the page, my guess is another 20 videos would automatically pop up. It’s like trying to get rid of thistles in my paddocks with vinegar and hot water. Yes, it’s environmentally friendly, Liz, but all the farmers around town are laughing at me!

Besides, Zuckerberg is up to his zucks right now taking deep fake videos to a very freaky new level. In an interview with tech podcaster Lex Fridman last year, Zuckerberg said his company was working on AI technology that will help you create a virtual avatar – or human-like clone of yourself – which people will be able to ‘have conversations’ with.

True dinks.

Zuckerberg is creating his own (Facebook) Frankenstein … and that story turned out okay, right?

Tread Your Own Path!

A screenshot from a deepfaked video of Scott Pape.

Generally I don’t speak about politics in this column, but last week my editor requested (read: demanded) that I write about the changes to tax cuts. Now I know why. Holy Hector, what a response! So, here we go again …

AMEN, BAREFOOT

Scott,

I love your position on the tax cuts! I’m in the highest tax bracket, and you won’t catch me moaning about getting a bit less of a still giant tax cut when we are in a cost of living crisis that I am immune from due to my high income. For all of those complaining about providing a tiny tax cut to low income earners who desperately need it, I wish they would all pack up and move somewhere like Brazil – and sip cocktails while staring at the favelas and feeling better than everyone else. This isn’t the Government breaking promises, it’s the Government responding to an urgent situation affecting the most vulnerable in society.

Linda

Treasurer Jim Chalmers. Picture: NCA NewsWIRE / John Gass

Hi Linda,

You have to wonder if it was really that urgent, why did they spend months denying they’d change anything … only to turn around and fold like a cheap Aldi card table when the polls dipped?

That’s politics I guess.

Speaking of which, let’s spare a thought for poor old Treasurer Jim Chalmers. He’s like me at 9pm on a school night – all he wants is for everyone to shut up and go to sleep. Yet, after Albo’s tax flip last week, some of his colleagues have gotten a bit hot and hairy and want Jim to put tax reform on the table.

Good idea. If the Government had the bolas, they could cut the capital gains discount and ditch negative gearing, which would mean that young first home buyers could finally compete on a level playing field with property investors.

Yeah, right. “If I hear another peep out of you lot, there will be no tuck shop tomorrow!”, yells a furious Jim Chalmers (who this week ruled both changes out).

Oh, and I agree with you on the favelas in Brazil. I visited one a few years ago, and as we walked up to the gates my guide motioned up to the hills – from the top of the hill I could see a gun was pointing at my head. The favelas are run by a ruthless bunch of overlords … kind of like the Government!

Anyway, thanks for the words of support, Linda. And, just for balance, here’s Mark, who thinks I’m a soggy sanger …

YOU’RE NOTHING BUT A BAG OF %$#&, BAREFOOT

Scott,

Many people who earn a lot are miners. We sacrifice our lives without family and friends to make higher wages while giving tax cuts to people who choose to earn less but won’t make a sacrifice to earn more. And then they whinge to get more handouts! I’ve never been given a dollar from all the handouts and I’m over it. Australia is a joke. You think we like getting up at 4am and not getting back to our rooms till 7pm? I normally like your column, but if you think we should keep funding the bludgers you can go eat a bag of (DELETED).

Mark

High income earners should shovel their money into the last great (legal) tax dodge … super.

Hi Mark

I had to severely edit your question for all the swearing, threats and insults – but I thoroughly enjoyed it. Seriously, getting chewed out by an angry miner was the highlight of my week!

You work bloody hard, and you get paid bloody well for it. You’re living the Australian dream. Now look, you sound like a tough, stoic bloke. You don’t depend on anyone, and the Government thanks you for that. In fact, you should do what our politicians do: talk to your accountant and discuss shovelling your money into the last great (legal) tax dodge … super, and, because you’re a high income earner, funnel the rest into a family trust.

Don’t get angry, just work the system.

2024 WILL BRING THE BIGGESET CRASH OF OUR LIFETIME

Hi Scott,

A question for you if you wouldn’t mind commenting – is there any truth to economist Harry Dent’s latest dire warning of doom for shares and property in Australia?

Jenny

US economist Harry Dent

Hi Jenny,

So I watched Harry on the Today show. He predicted that “2024 will bring the biggest crash of our lifetimes”, and suggested that the value of both Aussie shares and property could more than halve this year.

It was frankly … weird.

The folks on Today are supposed to be journalists, but the hardest hitting question they asked wasn’t even a question. All the interviewer said (with a giggle) was, “Geez, that’s a bit depressing”.

So here’s a question I would have asked Harry:

“Harry, you’ve been incorrectly predicting that Australian property prices will crash for years.

“You said they’d be down by … 50 per cent in 2009, 65 per cent in 2011, 55 per cent in 2014, 50 per cent in 2016, 40 per cent in 2018, and 40 per cent in 2020. You have been ball-tearingly wrong for so long, why should we believe you today?”

And because he’s a savvy sausage, Harry would no doubt have a well-rehearsed rebuttal that would sow enough doubt in the minds of viewers eating their cornflakes to let him wriggle out of that question. So then I’d then follow it up with my final question:

“Harry, if you have all the answers, why don’t you set up an investment fund and make billions profiting from your predictions?”

Because, once upon a time he did. Except it was a dud, reportedly losing 80 per cent of its assets before it was merged and closed down.

DISCLAIMER: Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.

Originally published as Scammers weaponising deep fake videos are the biggest winners out of AI, says Barefoot Investor