Key points:
- Hackers used AI deepfake videos to promote the fraudulent $Tanzania token via Dewji’s compromised X account
- Over $1.48 million was invested in the scam before it was exposed
- X has become a hotspot for crypto fraud due to reduced content moderation
TANZANIAN billionaire Mohammed Dewji has fallen victim to a cyberattack in which hackers hijacked his X (formerly Twitter) account to promote a fraudulent cryptocurrency token. Forbes reports that the perpetrators used AI-generated deepfake videos to mislead users into investing in the bogus digital currency, $Tanzania.
On Wednesday morning, Dewji’s account posted a 10-second video featuring what appeared to be the tycoon sitting in his home office, holding up a piece of paper with the word ‘$Tanzania’ written on it. The video, however, was not real. It was an AI-manipulated deepfake designed to deceive his 2.2 million followers.
Dewji confirms hack, denies involvement
Dewji, the CEO of METL Group and owner of a professional football team in Dar es Salaam, quickly denied any involvement but confirmed that his account had been compromised.
‘My account has been hacked ,’ Dewji wrote via WhatsApp on Wednesday afternoon. His team had already reported the security breach to X, yet he remained locked out of his account while scammers continued to post fraudulent promotions for $Tanzania.
Even after some of the misleading posts were removed, the hackers persisted. By the afternoon, they had uploaded additional deepfake videos in which an AI-generated Dewji insisted that his account had not been hacked and reaffirmed the legitimacy of the cryptocurrency. In one of the videos, the manipulated version of Dewji held up the same piece of paper with ‘$Tanzania’ written on it, stating, ‘I’m trying to verify myself.’
Scammers make off with $1.48 million
The fraudulent scheme was highly effective, with investors pouring $1.48 million into $Tanzania within hours, according to blockchain analytics platform Lookonchain. The token was listed on the Solana blockchain, a common platform for cryptocurrency trading.
Cybercrime investigator ZachXBT linked the perpetrators to a similar scam that targeted the X account of former Brazilian President Jair Bolsonaro just two weeks prior. That attack resulted in scammers stealing $1.3 million from unsuspecting investors.
X: a growing hub for crypto fraud
Since Elon Musk took over X in 2022 and reduced content moderation efforts, the platform has become increasingly vulnerable to crypto scams. Fraudsters have used deepfake videos of high-profile figures, including Musk himself, to push fake cryptocurrencies.
Deloitte estimates that deepfake-related fraud losses exceeded $12bn in 2023 alone. The rapid advancements in AI-generated content mean that while tech-savvy users might detect such fakes, many unsuspecting investors continue to fall victim.
Reflecting on the ordeal, Dewji acknowledged the need for stronger cybersecurity measures. When asked for additional comments, he told Forbes, ‘I guess I need to invest more in cybersecurity.’
As of now, X has not responded to requests for comment regarding the attack.
