#3: Automatic fan machines, Meta’s bank data-sharing, pig butchering scams

Last week, we dove into the rise of AI-generated phishing sites, off-platform scams targeting gig workers, and how privacy-enabled device shadowing is being abused. If you missed it, be sure to check your inbox!

Here’s what’s at the top of our radar this week:

NATE'S TAKE

Top Three This Week

1. Instagram “Automatic Fan” Machines Fueling the Dead Internet Theory
2. Meta's New Information Sharing Partnership with Banks
3. Pig Butchering Scams Keep Getting Smarter

1. Instagram “Automatic Fan” Machines Fueling the Dead Internet Theory

If your Instagram explore feed feels increasingly devoid of genuine content, you’re not alone. Fraudsters are exploiting Instagram’s algorithms with mass-produced “fan machines,” designed to inflate follower counts, likes, and comments on a massive scale. These bots, often sold as automated “fan-boosting” services, churn out hollow engagements that make real users feel like they’re swimming in a sea of fake profiles

This trend is fueling the “Dead Internet Theory,” which posits that the internet is gradually being taken over by AI-generated content and bots, reducing authentic human interaction. While many brands and influencers use these services to bolster vanity metrics, the increasing presence of fraudulent accounts is degrading user trust in the platform. Businesses relying on Instagram for marketing are likely to see engagement rates suffer as they wade through artificial traffic, which is increasingly difficult to detect.

Hat tip to Troy G. on LinkedIn for bringing this to light!

2. Meta's New Information Sharing Partnership with Banks

Meta has partnered with UK banks in a pilot program to curb online fraud through its Fraud Intelligence Reciprocal Exchange (FIRE) initiative. By sharing real-time data, the collaboration has already taken down around 20,000 scam accounts, including a major ticket scam network spanning the UK and US. Meta plans to expand the program globally, though it faces challenges with data privacy and compliance.

The sheer volume of data Meta collects across its platforms has always sparked debate, and this partnership magnifies those concerns. With consumer trust in Big Tech already fragile, it will be crucial for Meta to tread carefully and ensure this collaboration truly benefits users without further eroding their sense of privacy. Fraud teams in the banking sector will need to determine how much they can trust Meta’s data and how they can integrate these new insights without creating friction for their customers. This comes at a time where Meta is under increased scrutiny for how it allows scams to proliferate on its social networks.

3. Pig Butchering Scams Keep Getting Smarter

A recent case in Cambodia highlights the connection between “pig butchering” scams and human trafficking networks. Investigative journalist Mech Dara, known for exposing online scam operations, was arrested for his work uncovering fraud in Cambodia. These scams trick people into forced labor at scam compounds, where they engage in online fraud, often posing as investment advisors or romantic partners. U.S. authorities have also imposed sanctions on key figures linked to these networks.

What makes these scams so dangerous is their emotional manipulation—they prey on vulnerable individuals who may not even realize they’re being scammed until it’s too late. Once trust is built, fraudsters encourage victims to move money to an “investment” that appears legitimate, with websites that mirror the look of top financial platforms. When the victim tries to cash out, they find their account wiped clean.

Erin West has been doing fantastic work bringing the impact of pig butchering to light. If you’re unfamiliar with Erin’s work, she’s put together detailed explanations to how this ecosystem works and the staggering scale of global pig butchering operations.

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