The Rise of Deceptive AI and the Fight to Protect Consumers Online
Kim Gun-mo (pseudonym), a 50-year-old self-employed individual, encountered an advertisement on YouTube last year featuring a well-known economic expert recommending specific stocks as a “final opportunity to give back to society.” Trusting the familiar face and voice, he didn’t suspect a scam. Park Myung-ok (pseudonym, 62) had a similar experience, falling for a celebrity-endorsed advertisement on YouTube promising free stock picks.
Both individuals were lured into investment scams, losing significant sums of money after being promised high returns and pressured into making additional payments under false pretenses. These cases highlight a growing trend: the increasing sophistication of online fraud, particularly through deceptive advertising on platforms like YouTube.
YouTube’s Struggle to Police Billions of Ads
YouTube has become an integral part of daily life, but it’s also increasingly exploited by criminal organizations as a hunting ground. The surge in stock investment fervor has fueled a rise in fraudulent “stock picking rooms” promoted through YouTube advertisements. Where scammers once relied on spam texts and random phone calls, they now leverage YouTube’s sophisticated targeting algorithms.
These ads are designed to appeal to viewers interested in finance, capitalizing on the platform’s inherent trust. Clicking on an ad can lead to open chat rooms on platforms like KakaoTalk, Telegram, or Naver Band, where “hype men” flood the channels with fake profit screenshots, pressuring victims to invest.
Google, which owns YouTube, states it operates a strict advertising policy and utilizes AI-based automation and human reviewers to identify and block violating ads. In 2024, Google reported blocking and removing over 5.1 billion violating ads globally and suspending 3.92 million advertiser accounts. 415 million of those ads and 5 million accounts were related to scams. However, Google acknowledges the limitations of its systems, admitting that malicious ads are becoming increasingly sophisticated.
The Evolution of Deception: Deepfakes and Cloaking
Recent scams on YouTube are becoming remarkably intricate. A common tactic involves “celebrity impersonation” ads featuring the faces of prominent figures – CEOs of major corporations, renowned economists and popular YouTubers – falsely claiming to offer free information on rapidly rising stocks.
These videos are often created using AI-powered deepfake technology, replicating the voice and likeness of real individuals with alarming accuracy. Scammers also employ fake news portal website interfaces to appear legitimate. Experts warn that by 2026, deepfakes will be nearly indistinguishable from reality.
To evade detection, scammers utilize “cloaking” – a technique where the content of an ad or landing page is changed after initial approval. An ad initially vetted as legitimate investment education is swapped for scam content, or the link directs users to a fraudulent chatroom. They also target specific demographics to avoid scrutiny.
International Responses and the Need for Stronger Regulation
The issue isn’t limited to one country. The European Union (EU) and the United Kingdom are taking a more aggressive stance. The EU’s Digital Services Act (DSA), in effect since 2024, allows for fines of up to 6% of a platform’s global annual revenue for failing to address illegal content and deceptive advertising. In December 2025, the EU imposed a €120 million fine on X (formerly Twitter) for violating the DSA.
The UK’s Online Safety Act imposes a “duty of care” on platforms to protect users from harm, with potential fines of up to 10% of annual revenue for non-compliance. These nations are redefining platforms not as mere “hosts” but as “managers” responsible for the content they distribute.
Currently, YouTube is classified as a “value-added telecommunications business” under domestic law, exempting it from the strict pre-screening requirements applied to terrestrial broadcasters. While the Korea Communications Commission (KCC) can request corrections or deletions, enforcing compliance on a foreign entity like Google is challenging.
What Needs to Change: Platform Accountability and a Unified Approach
Experts are calling for a Korean version of the Digital Services Act. Legal frameworks are needed to regulate platforms’ responsibility for filtering illegal advertising. The introduction of punitive damages is also suggested, incentivizing platforms to actively combat fraudulent ads.
Key solutions include mandatory advertiser identity verification, and a shift in the incentive structure to prioritize user safety over advertising revenue.
vigilance is crucial. Remember that exclusive access to guaranteed high returns is a myth. Be wary of ads featuring celebrities or promises of “guaranteed profits.” Legitimate financial institutions will never request deposits through open chat rooms.
FAQ
Q: What is deepfake technology?
A: Deepfake technology uses artificial intelligence to create realistic but fabricated videos or audio recordings, often used to impersonate individuals.
Q: What is cloaking?
A: Cloaking is a technique where scammers show different content to advertising reviewers than what is shown to users, allowing them to bypass detection systems.
Q: How can I protect myself from these scams?
A: Be skeptical of unsolicited investment advice, especially from celebrities or individuals promising guaranteed returns. Verify information independently and avoid clicking on suspicious links.
Q: What is being done to address this issue?
A: International regulations like the EU’s Digital Services Act are increasing platform accountability. Experts are advocating for similar legislation in Korea.
Did you know? The sophistication of deepfake technology is increasing so rapidly that experts predict it will be nearly impossible to distinguish between real and fake videos by 2026.
Pro Tip: Always research any investment opportunity independently before committing any funds. Consult with a qualified financial advisor.
Have you encountered suspicious online advertising? Share your experience in the comments below and assist us raise awareness!
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