How Scammers Use AI and Cryptocurrency to Defraud Churches

New tech makes frauds more convincing than ever

When pastor and author TD Jakes fell under suspicion of attending sex parties hosted by hip-hop mogul Sean “Diddy” Combs, Jakes blamed the rumors on an army of “44,000 bots that were released on me.” According to Jakes, an investigation found that 98% of social media posts connecting him with the sex parties were artificial intelligence-generated.

Photo by Vitaly Gariev / Unsplash / Creative Commons

As churches grapple with how to ethically integrate AI into their ministries, unscrupulous scammers are taking advantage of new technologies for their own purposes. The FBI’s Internet Crime Report shows cyber crimes steadily rising over the last five years, and one cybersecurity analyst warned in a January article for Medium that “churches and faith-based organizations are increasingly becoming targets for cybercriminals through data breaches and ransomware.”

Here is a list of high-tech schemes and how churches can protect their congregations.

Deepfakes

The proliferation of “deepfake” software has made it easier and cheaper than ever for criminals to create AI-generated audio or video that realistically impersonate pastors or other trusted figures. Often, the intent is to convince victims to send money or reveal private information. Deepfakes are also used to harm reputations or simply generate views.

In June, AFP Fact Check reported that hundreds of AI-generated sermons and speeches attributed to Pope Leo XIV had populated YouTube and TikTok. The report noted that disclosures of the use of AI for the videos “were often hard to find — and sometimes nonexistent.”

Phishing/Smishing

The sending of fraudulent emails (phishing) or text messages (smishing) is not new, but AI has made it harder than ever to differentiate these fake communications from the real thing. MinistryWatch recently reported how such scams are increasingly targeting churches. Emails claiming to be from pastors ask congregation members to make donations in the form of gift cards. Criminals then use the gift card information to steal the money.

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Would-be victims often sense inauthenticity. But through AI, these messages are becoming increasingly realistic, often mimicking the tone and even grammar of the person or organization being impersonated. AI can even personalize emails in relation to the recipient’s job role and digital footprint. As a result, recipients let down their guard and fall victim to theft, malware, ransomware or other attacks.

Cryptocurrency

Because it’s new and not well understood, cryptocurrency has become a fertile ground for fraud.

In a pump-and-dump scam, perpetrators artificially inflate the value of a cryptocurrency, then sell all their holdings, leading to a price crash that causes victims to lose their investments. Other scams include selling fake crypto products, stealing cryptocurrency through SIM card data, tricking victims into transferring cryptocurrency, or using fake websites to acquire crypto account information.

In a number of cases, pastors have been the perpetrators of cryptocurrency scams. In July, for example, Eligio Regalado, pastor of the online-only Victorious Grace Church, was indicted for an alleged $3.4 million scheme in which he reportedly convinced his congregation to invest in a worthless cryptocurrency token, then stole most of the money. In January, another pastor, Francier Obando Pinillo, was indicted for roping his own Spanish-speaking congregation into a crypto multilevel marketing scheme.

Pig Butchering

While “pig butchering” scams do not directly involve churches, the elderly in your congregation are a prime target. The term refers to a new technique that combines cryptocurrency and romance scams. The perpetrator meets the victims online, builds a relationship, then convinces the victim to send money or invest in cryptocurrency.

“These types of scammers go after the most vulnerable people in our society,” said Jessica Johnston, a senior director at the National Council on Aging. “Older adults are common online scam targets, since they are more likely to live alone and be isolated from family and friends.”

Protecting Your Congregation

The United Methodist Church’s Discipleship Ministries offers recommendations for protecting congregants’ sensitive data. This includes securing church computers, being transparent on how members’ data will be used, omitting personal information (such as a church directory) from websites, using email management software, and letting the congregation know what a legitimate appeal will entail (for example, “We will never ask for credit card information in an email”).

The NCOA offers advice on how seniors can detect pig butchering scams and protect their assets. Red flags include messages from unknown senders and profile pictures that look like professional models. As soon as someone you meet online asks for money, cease communication.

While deepfake videos have grown more convincing, experts say to look for imperfections such as unnatural lighting, smooth skin textures, or audio that does not fully match mouth movements. Reverse search tools can track down the original version of a manipulated image or video. To avoid being impersonated by deepfake content, people can limit their online footprint, such as by keeping photos private.

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