Ripple has issued an urgent alert to XRP investors about sophisticated AI deepfake scams that have already cost victims millions, with fraudsters impersonating CEO Brad Garlinghouse to promote fake giveaways.
At a Glance
- Fraudulent ads featuring AI-generated deepfake videos of Ripple CEO Brad Garlinghouse are promoting fake XRP “airdrops” on platforms like YouTube and X
- The scam convinces users to send XRP to specific wallets with false promises of receiving larger amounts in return
- Over $25 million was lost in phishing incidents in April alone, according to on-chain analytics
- Ripple emphasizes that neither the company nor its executives would ever ask users to send cryptocurrency for returns
- Users are advised to verify all information through official Ripple channels and enable two-factor authentication
Deepfake Technology Fueling Cryptocurrency Scams
Cryptocurrency company Ripple has issued a stark warning to XRP holders about increasingly sophisticated scams using artificial intelligence to create convincing deepfake videos of company executives. These fraudulent schemes have been appearing on major platforms including YouTube and X (formerly Twitter) since November, with many users reporting significant financial losses. The scams typically feature manipulated videos of Ripple CEO Brad Garlinghouse appearing to promote XRP “airdrops” or giveaways that promise to multiply investors’ holdings.
The fraudulent operations exploit advances in AI technology to create realistic simulations of trusted figures in the cryptocurrency space. By using generative AI and voice-cloning tools, scammers have lowered the technical barriers to creating convincing fake content. This technological evolution has made it increasingly difficult for average investors to distinguish between legitimate company announcements and sophisticated imitations designed to steal their digital assets.
How The Scam Works
The primary scheme involves ads for a purported XRP “airdrop” that instructs victims to send XRP to a specific wallet address with the promise of receiving significantly more in return. The videos use deepfake technology to make it appear as if Garlinghouse himself is endorsing the giveaway, lending credibility to the scam. These fraudulent promotions have been particularly prevalent on YouTube and X, where crypto-related content receives high engagement and platform moderation has proven insufficient.
“There’s been an uptick in deepfake scam videos (ex below) overlaying new words with old video footage from Ripple’s events (@YouTube are you asleep at the wheel again?!). Reminder: don’t trust, verify (all approved messaging will only come from official Ripple accounts),”, said Garlinghouse.
According to Ripple’s warning, scammers are using multiple channels to distribute their attacks, including YouTube, Telegram, and X. These platforms have struggled to effectively monitor and remove such content, with detection and takedown efforts often lagging behind the creation of new fraudulent materials. This problem isn’t new to X in particular, which has a documented history of struggles with cryptocurrency scam advertisements, including those using images of its owner, Elon Musk.
Ripple’s Response and Prevention Measures
Ripple has emphasized that the company and its executives would never ask users to send cryptocurrency with promises of returns. The company is actively flagging and reporting fraudulent content but notes that platform response times are often slow. In addition to suspicious videos, Ripple has identified an increase in fake profiles and websites impersonating the company and its representatives, creating a multi-layered threat to unwary investors.
The FBI and regulatory agencies have expressed growing concern about the sophistication of these AI-powered scams and have called for improved detection tools. For XRP holders, Ripple strongly recommends implementing basic security measures including enabling two-factor authentication on all accounts and verifying any announcements through official Ripple channels before taking action. The company urges extreme caution regarding unsolicited messages and unfamiliar platforms.
Rising Threat Amid Market Recovery
Security experts have expressed particular concern that AI-powered scams may increase as the cryptocurrency market rebounds. The accessibility of AI tools has significantly lowered barriers for attackers, enabling more sophisticated operations with less technical expertise required. On-chain analytics revealed that over $25 million was lost to phishing incidents in April alone, highlighting the scale of the problem facing cryptocurrency investors.
For XRP holders specifically, Ripple’s warning serves as a crucial reminder that even as the legal landscape for XRP has improved following Ripple’s partial victory in its SEC case, security threats continue to evolve. Investors are advised to remain vigilant against too-good-to-be-true offers and to independently verify all investment opportunities through official channels before committing any funds or personal information.
