South Korean Gambling Syndicate Utilizes Deepfakes Featuring Celebrity Endorsements for Platform Promotion, Generating $2.8bn Illegally
South Korean authorities have recently announced the arrest of 13 individuals involved in an illegal online gambling operation worth approximately US$2.8bn. The operation, which ran through offices in Gyeonggi, Bucheon, and Incheon, used deepfake technology to promote their gambling platform and gain exposure through YouTube streams, luxury advertisements, and celebrity endorsements.
Investigators believe the ringleaders profited about β©300bn (US$214m) and seized assets worth about β©10bn (US$7m), including cash, luxury goods, and real estate. Among those detained was the alleged mastermind of the operation. Another 37 suspects, including the alleged mastermind, were also detained.
Deepfake videos have been increasingly used in the context of illegal online gambling, although specific data on their prevalence within South Korea's illegal gambling operations is limited. However, there are indications that deepfakes are used for deceptive practices such as impersonation or advertising. For example, North Korean hackers have been known to use deepfake technology in a spoofed Zoom meeting to breach a Canadian gambling firm, demonstrating how deepfakes can facilitate cyberattacks tied to gambling and financial theft.
South Korea has taken a strong stance against digital crimes involving deepfakes. The country has criminalized possession or viewing of sexually explicit deepfake content, and the South Korean government, under President Yoon Suk Yeol, has initiated a crackdown on digital sex crimes involving deepfake pornography. While specific laws targeting deepfakes in illegal gambling are not explicitly detailed, South Koreaβs strict cybercrime regulations and gambling laws imply that those involved in illegal online gambling using deepfakes could face significant legal penalties, including criminal charges related to fraud, cybercrime, and illegal gambling operations.
The exact frequency of deepfake use in illegal gambling in South Korea remains unclear from existing data but is recognized enough to warrant governmental action against misuse. The illegal gambling operation has been shut down, and 107 users, some of whom are underage, face gambling-related charges. A Philippines-based website operator faces extradition to South Korea.
As the use of deepfake technology continues to evolve, it is essential for governments and law enforcement agencies to stay vigilant and adapt to new threats. South Korea's crackdown on deepfake-related crimes is a significant step towards ensuring the safety and security of its citizens in the digital age.
Technology continues to be a tool for illicit activities, as evidenced by the recent South Korean crackdown on a casino-and-gambling operation that employed deepfake technology to promote their platform. Despite being primarily associated with digital sex crimes, South Korea's authorities are also increasing their focus on deepfake use in crime-and-justice areas, such as illegal online gambling, due to its potential for deceptive practices and fraudulent advertising.
