Deepfake scams: How AI fraudsters used David McWilliams and Miriam O’Callaghan to trick victims

As deepfake scams targeting Irish public figures grow more sophisticated, victims face rising financial losses while regulators race to respond

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If one of the country’s most well-known economists promoted a lucrative investment opportunity promising astronomical returns, would you go for it?

Former central banker, writer, and broadcaster David McWilliams, known for his explanation of complex economic ideas through unconventional mechanisms, can be seen across many platforms online talking about his popular podcast, his annual Kilkenomics festival, or his latest Irish Times column, and malicious actors have taken notice.

Earlier this year, Mr McWilliams issued a public warning about a scam doing the rounds on social media that used his likeness to defraud people.

Thousands of euros were lost by those who fell for false, AI-generated videos of McWilliams advertising various cryptocurrencies, bitcoin, and other investment opportunities.

From AI posts of Mr McWilliams being thrown out of RTÉ studios for sharing the financial secrets of Ireland’s elite, to a fake photograph of the economist being detained by gardaí, criminals were able to manipulate his reputation to defraud those most vulnerable through online scams, with one pensioner losing €15,000 as a result.

But McWilliams isn’t the only figure to have his likeness manipulated. “When I first saw the fake ads of me on social media, I laughed it off,” said RTÉ broadcaster and Prime Time presenter Miriam O’Callaghan.

These ads, falsely stating that Ms O’Callaghan had been fired from RTÉ after being “dragged out drunk” from the studios, generated a long and emotional legal battle between her and Facebook-owner Meta.

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The ads were shared to promote a fake face cream business, which it said was started by Ms O’Callaghan after she was fired from the state broadcaster.

Speaking to the Irish Examiner, Ms O’Callaghan said it wasn’t until family members started to believe the fake narrative, and calls from distressed victims came into the RTÉ studios, that she realised how powerful these scams were.

“I don’t take things seriously enough unless they’re really terrible,” Ms O’Callaghan said.

“When I first saw it, I assumed it would just eventually go away. That was until my mother came out of mass one day to be told by a friend that she read online that I was fired and started my own skincare business. That was when I first realised that people were taking these ads seriously.

Everyone believed them. At one point, a government minister phoned me in confidence to tell me that his wife had fallen victim to the scam.

“Then, the ad was seen by my son, a teenager at the time, who phoned his dad crying, asking about my ‘drinking problem’ that had gotten me fired from RTÉ.” But the turning point for the broadcaster was when a woman contacted RTÉ to say she had bought the advertised face cream for her daughter, who was undergoing cancer treatment at the time.

“When I heard that she was scammed, that’s when I decided to take the case against Meta,” Ms O’Callaghan said.

“It was a real risk for me. I had to put my home up for collateral, which my mother kept telling me I would lose. But thankfully, things worked out in my favour.

In the end, Facebook Ireland, now Meta, apologised unreservedly to Ms O’Callaghan over the fake ads that used her name and image, as part of her High Court action for defamation.

In the era of widely available and mostly unregulated AI, the threat of such scams is rising exponentially, and they are on track to become more realistic, more believable, and all the more damaging.

Economist David McWilliams had his likeness used by fraudsters online to defraud people. Picture: Michael Mac Sweeney/Provision

Both the Central Bank of Ireland and the Banking and Payments Federation of Ireland (BPFI) have issued stark warnings in recent days against the dangers of AI, which is underpinning the rise of deepfake technology.

Deepfakes are false video or sound recordings of real people, created using AI, that replace someone’s face or voice with that of someone or something else, in a way that appears real.

According to the BPFI, average losses suffered by victims of scams using deepfakes range between €30,000 and €40,000, with the main target being those over the age of 50 looking to top up their pension.

Investment fraud surge 

The past three months have seen a surge in investment fraud cases reported to the gardaí, the BPFI said, with this ranging from small-scale cryptocurrency scams to larger investment-related fraud.

In the three months to October, Gardaí recorded a 21% increase in investment scams, with Niall Smith, Detective Sergeant at the Garda National Economic Crime Bureau, noting that almost €31m has been reported stolen in Ireland last year through investment fraud, more than double what it was in 2021.

While the sums of money lost are quite large, Mr Smith said that the average victim is not necessarily wealthy, but rather someone who has worked to build up a pension and is looking for an opportunity to top up their finances ahead of retirement.

The Central Bank has also warned specifically about the increasing use of deepfakes, as well as their role in promoting investment platforms or encouraging users to join online ‘trading mentorship’ groups for advice.

For many victims of scams, attempts to retrieve lost funds can often be quite bleak. As Miriam O’Callaghan recalls, her legal battle with Meta, spanning more than five years, was anything but easy.

“These social media companies grind you down, and quite honestly, they do not give a toss,” she tells the Irish Examiner.

They simply do not care about these sorts of issues. They are not properly regulated, and these issues are not a priority.

“In my case, I think Meta just tried to wait it out in hopes that I would go away. Up until the very last day, things were very difficult for us. It was quite an emotional affair at the very end of it.” Ms O’Callaghan notes, however, that she is one of the lucky ones who was in a position to take a social media giant to court and was helped by lawyers who worked pro bono for her until after the settlement.

For many others who find themselves in a similar situation, justice often feels far out of reach.

“We’re a small country on the periphery of Europe. Meta is a massive, global tech giant. They do not care about someone like me,” the Prime Time host noted.

Yet, this small country remains a powerhouse for the world’s largest social media companies, serving as a hub for operations across Europe, the Middle East, and Africa.

Meta apologised unreservedly to broadcaster Miriam O’Callaghan over the fake ads that used her name and image, as part of her High Court action for defamation. Picture: Evan Doherty

Facebook, Instagram, and WhatsApp owner Meta employs around 2,000 people in Ireland across their head office in Dublin and Reality Labs in Cork City, which specialises in the development of the company’s latest AI, augmented reality and virtual reality products.

X, formerly Twitter, also operates its EMEA headquarters in Ireland, as do Google, TikTok and Microsoft.

It is easy to view online issues as an out-of-reach, intangible phenomenon that cannot be addressed in the real world. Reports can be made and complaints can be filed, but what happens then?

But Ireland is not powerless in the fight against big tech and their hesitancy to regulate; this is their home, and their offices are on our doorstep.

“It’s terrifying, the power they have,” says Ms O’Callaghan. 

AI can bring great benefits, but it needs to be controlled and properly regulated, as do the companies that platform them. 

Just this week, Ireland’s newly established media regulator, Coimisiún na Meán, launched an investigation into Elon Musk’s X regarding its compliance with Article 20 of the EU’s Digital Services Act.

The investigation will assess if X has “properly informed” users of their rights to “contest decisions” it makes after users report content that they believe “violates X’s terms of service.” If the commission finds that X has breached the Digital Services Act, it can impose a fine of up to 6% of global turnover. It is understood that further investigations from the regulator may soon follow the announcement of this first probe into X.

For social media companies to take online safety seriously, they need to feel the pressure. With the possibility of further investigations in the not-so-distant future, Coimisiún na Meán is sending a clear message. If social media companies are going to operate under Ireland’s roof, they must adhere to Ireland’s rules.