Police in southern Brazil have arrested four people accused of running a nationwide Instagram ad scam that used AI-generated videos and images of supermodel Gisele Bündchen and other celebrities, Reuters reported.
Investigators in Rio Grande do Sul said they froze assets across five states and identified more than 20 million reais (about $3.9 million) in suspicious transactions flagged by federal anti-money-laundering agency COAF. The probe began in August 2024 after a victim reported an altered Instagram video of Bündchen promoting a skincare product, the news outlet said.
The scheme relied on so-called “celeb-bait” ads designed to look like endorsements or giveaways. In one example cited by police, fraudsters used Bündchen’s likeness to advertise free suitcases, charging “shipping fees” for goods that never arrived, according to the report. Authorities say the group also pushed phony betting platforms and other offers using deepfaked personalities.
Prosecutors are pursuing charges of online fraud and money laundering. While individual losses were typically under 100 reais (about $19), most victims did not file complaints—an underreporting trend investigators say emboldened the perpetrators, Reuters said.
“That created a perverse situation in which the criminals enjoyed a kind of ‘statistical immunity,’” said Isadora Galian of the cybercrime unit, in a statement reported by Reuters.
The operation is among Brazil’s first major enforcement efforts targeting the misuse of artificial intelligence to fabricate celebrity endorsements at scale. It follows a June ruling by Brazil’s Supreme Court holding social media platforms liable for criminal ads posted by users if the companies fail to remove them swiftly, even without a court order.
Read more at Reuters