Chinese authorities have issued a warning about a criminal syndicate that scammed investors by masquerading as developers of a groundbreaking blockchain project known as DeepSeek.
The fraudsters deceptively claimed that their platform utilized DeepSeek technology, touting it as a secure and lucrative investment prospect. This illicit scheme specifically targeted Chinese users, promising high returns and leveraging the hype surrounding DeepSeek.
In January, DeepSeek attracted attention for its AI model's remarkable performance akin to OpenAI's benchmarks, but at a more economical cost. Seizing upon investor interest, the scammers launched crowdfunding initiatives, only to vanish with the raised capital.
Victims were duped into believing they could earn substantial monthly profits exceeding 10,000 yuan ($1,373) through DeepSeek. The scammers peddled a tutorial priced at 39.9 yuan ($5.5), falsely claiming it would unveil the secrets to crafting viral content. However, the guide contained minimal relevant content, primarily recycling publicly available information.
Furthermore, the fraudsters established counterfeit "monetization training camps," charging fees ranging from 299 yuan ($41) to 399 yuan ($55) for worthless courses. They went as far as fabricating fake DeepSeek communities, masquerading them as official forums, and promoting non-existent opportunities for qualification tests and advanced courses. The introduction of DeepSeekCoin, a fictitious cryptocurrency with ostensible technical support, enticed unwitting investors who ultimately suffered financial losses.
In response, DeepSeek officially disassociated from any cryptocurrency that illegitimately linked itself to the project. The organization clarified its stance, stating that it had not issued any virtual currencies and maintained a single verified Twitter account for communication purposes.
In addition to financial scams, authorities have cautioned against the proliferation of counterfeit DeepSeek applications embedded with malware. Malicious software disguised as DeepSeek apps with filenames like DeepSeek.apk, DeepSeek.exe, DeepSeek.msi, and DeepSeek.dmg poses severe security threats, compromising user privacy.
Once installed, these rogue applications prompt users to download malware-laden updates that hijack system functions, enabling the theft of sensitive data such as contacts and messages. Some malware strains even block users from uninstalling the app, complicating its removal.
As the popularity of AI applications like DeepSeek rises, the authorities predict an uptick in similar fraudulent activities. To safeguard against potential risks, users are advised to verify sources before engaging with AI-related investments and to exercise caution when dealing with dubious applications that could jeopardize their security.