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How Criminals Used AI Face Apps to Swindle Users: A China Case Study Exposes the Risks

In China, a recent case has revealed how criminals exploited AI face-swapping technology to access personal information. In Guangzhou, individuals were convicted for illegally selling citizens’ data and creating fake facial recognition videos, leading to prison sentences and substantial fines. The rise of AI-based face manipulation has highlighted security gaps, especially in countries like China where facial recognition is frequently used for financial transactions on platforms like WeChat and Alipay.

These criminals used AI face apps, like "Check Head" and "Pass Face," to transform simple photos into realistic videos that mimic head movements required in facial verification systems. For a fee, users could upload a photo, which was converted into a dynamic facial recognition video, allowing access to victims' banking accounts and personal information. Industry insiders speculate that these services, especially the app Miaoya, may have earned over ¥100,000 in a single day, underscoring the profitability and reach of such operations.

Zheng, one of the culprits, admitted to acquiring citizens’ personal photos and selling them for approximately 15 to 20 yuan per photo. Co-conspirators then used these photos to generate fake videos capable of completing facial recognition actions, such as nodding or tilting the head, fooling security software into approving access. Ultimately, over 2,000 pieces of personal information were compromised, with illegal gains surpassing $15,000.

The Guangzhou Internet Court recently published this case, calling for increased security measures in response to the widespread availability of advanced AI tools. Experts, such as Zhang Tianyi from RuiLai Intelligent, emphasize the urgency of safeguarding data against AI-driven fraud, as such incidents expose serious risks to user privacy in the digital age. The convicted individuals were sentenced to prison terms of up to one year and two months and fined, marking a strong legal response to the emerging threat of AI-assisted fraud.