Fake Videos, Real Profits

Did you watch the Super Bowl? It was a fascinating experience — and I’m not just talking about the overtime thriller on the field. You see, an emerging technology was featured heavily in some of the fan-favorite commercials… And this technology could lead us to our next great profit opportunity. For a transcript of this […] You’re receiving this email as part of your subscription to Andrew Zatlin’s Moneyball Daily [Unsubscribe]( [Moneyball Daily] Fake Videos, Real Profits February 14, 2024 Did you watch the Super Bowl? It was a fascinating experience — and I’m not just talking about the overtime thriller on the field. You see, an emerging technology was featured heavily in some of the fan-favorite commercials… And this technology could lead us to our next great profit opportunity. [CLICK HERE TO LAUNCH VIDEO OR READ THE FULL TRANSCRIPT BELOW »»]( For a transcript of this video, see below. This transcript has been lightly edited for length and clarity. Fake Videos, Real Profits Super Bowl 58 is in the books. And man, what an event! The game… the snacks… the halftime show — it was all amazing. And I haven’t even mentioned the commercials. Some viewers tune into the Super Bowl simply for the advertisements. Companies spend millions of dollars to capture 30 seconds of your attention in hopes of selling you everything from cars and beer to potato chips. This year’s commercials were no different — well, except for one thing. You see, a fast-growing technology was on display during Sunday’s commercials. Did you notice it? When Content Gets Manipulated It’s a technology centered around digital manipulation… More specifically, how a person’s actions, or even their words, can be digitally altered to seem real. You’ve probably seen this technology used before — even during Super Bowl commercials. Recognize this baby? In 2008, the investment-trading platform E*Trade ran a commercial featuring a toddler who spoke with the clarity and maturity of an adult. He would encourage viewers to invest using E*Trade — part of the schtick being that investing through this company was so easy, a baby could do it. Obviously, we didn’t believe this baby was really the one talking. But his mouth sure moved like he was. This was an example of digital manipulation, or what’s being commonly referred to as “deep-fake” technology. (By the way, this ad campaign was a major hit, and talking toddlers have been used by E*Trade in subsequent commercials, even one that ran during last weekend’s Super Bowl.) Using deep-fake technology to advertise an investment platform via a talking baby is relatively harmless — meant mostly for entertainment. But what happens when this technology stops being used for fun and games? When Deep-Fakes Become Dangerous Last week, Iranians hacked into a United Arab Emirates news broadcast. And they made it seem as though the reporter was talking about Gaza. The thing is, he wasn’t. The hackers presented fake pictures of Gaza to accompany this phony report, all with the intent to stoke the flames of their political cause. This isn’t a new tactic. In fact, the Soviets have long since manipulated media by removing unwanted people from certain photos. Israel often accuses Palestinians of using Hollywood-quality staging (what it calls “Pallywood”) to create fake content… And here in the U.S., we’re increasingly seeing the technology used to create phony political ads. This is a topic that’s of particular importance as we gear up for one of the most controversial Presidential elections in recent memory. Deep-Faking Political Ads When you see an ad endorsing a political candidate, or even presented to you by the candidate themselves, you assume it’s legitimate, right? Thirty years ago, that was a safe assumption. These days? Not so fast… In 2017, after Donald Trump was elected, he faced scrutiny over the Steele dossier, a report that alleged Trump had close ties with Russia. Seven years later, Trump is still fighting those accusations, despite the report being completely fake. It’s one thing when potential voters get duped by a deep-fake advertisement. But it’s another when entire businesses fall victim… A $25 Million Mistake Earlier this year, a finance worker at a multinational firm was tricked into paying out $25 million to fraudsters. How did they trick the employee? You guessed it: deep-fake technology. The worker was asked to attend a video call with the company’s Chief Financial Officer and other staff. The CFO looked and sounded like himself. But it wasn’t him. And the other staff members on the call — members that the worker recognized — were actually deep-fake re-creations. On the call, the “CFO” requested that the worker release $25 million, which they did. In the end, the bad actors walked away with a small fortune. It’s a scary example, one that may not hit too close to home. But what happens if a loved one calls you asking for financial help — someone who sounds just like your family member, but is really a cyber-criminal? It could happen… More to Come... That’s why I’m bullish on defensive measures for this type of fraudulent technology. It’ll be something I like to call “cyber-media security.” I’m not exactly sure how it will work yet. But companies will undoubtedly invest in hardware and software designed to verify faces and voices. That might be good news for businesses like Cisco or CrowdStrike. Perhaps consumer-facing companies like Apple and Adobe will release tools that help you know for sure that the content you’re seeing or experiencing is legitimate. Bottom line: we’re in the earliest stages of defending ourselves from deep-fake technology. And as I uncover more about this topic, you can be sure I’ll come to you with more videos — more legitimate videos, that is. Until then, we’re in it to win it. Zatlin out. In it to win it, [Andrew Zatlin] Andrew Zatlin Moneyball Economics Copyright 2024 © Moneyball Economics, All rights reserved. You signed up on []( Our mailing address is: Moneyball Economics 1125 N. Charles Street Baltimore, Maryland 21201 [Update Subscription Preferences]( | [Unsubscribe from this list]( | [Terms & Privacy]( RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. You should never invest more than you can afford to lose. Please use this research for the purpose that it's intended — as research only. You should consult a professional financial advisor before ever taking a position in any securities you see herein. 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