Friday, March 21, 2025

How fake nudes rocked a community

An introduction to the Levittown podcast
View in browser
Bloomberg

For a November 2023 issue of Bloomberg Businessweek, Olivia Carville and Margi Murphy wrote about a group of young women in a New York City suburb whose photographs had been manipulated into pornography. Margi writes for the newsletter today about Levittown, six-part podcast in which they dive deeper into the topic. Plus: A crypto billionaire pursues his dream of building a space station.

If this email was forwarded to you, click here to sign up.

The internet age has ushered in a new category of personal victory: the feeling of identifying a harasser, blackmailer or vicious troll. That satisfaction is sweeter still if you're a cop or a prosecutor and can charge them with a crime. Or if you witness the overwhelming relief of a victim tortured by not knowing who'd been hiding behind the screen.

In a new podcast, my colleague Olivia Carville and I set out to understand exactly who was behind a global clearinghouse of nonconsensual deepfake pornography affecting countless girls and women around the world.

Our reporting begins at a school in Levittown, New York. Long known as America's first suburb, Levittown in 2023 gained notoriety when reports emerged that dozens of women had found out that someone had transformed innocent photos of themselveswith the help of artificial intelligence, and without their consentinto pornography. The case led to the first deepfake-porn-related conviction and had profound effect on one resident, Kayla, as it rippled through her close-knit community. Combining their own sleuthing with the work of law enforcement to dig up a law on the books to charge the perpetrator, Kayla and the women of Levittown eventually found some solace.

General Douglas MacArthur High School in Levittown in 2023.  Photographer: Shravya Kag for Bloomberg Businessweek

Since then, stories like the ones we found in Levittown have become far more widespread. With federal law remaining largely silent on the legality of creating nonconsensual deepfake pornographic images, state prosecutors have scrambled to find charges that fit a new kind of harassment.

AI-based deepfaking services are hitting a peak. Traffic to the 10 most popular "nudifying" apps soared by more than 600% year over year, from 3 million views in April 2023 to 23 million in April 2024, according to figures provided to Bloomberg by a research company that asked not to be identified in connection with its data on online pornography. In January this year alone, the websites received 18 million views, the research shows.

With a stamp of approval from first lady Melania Trump, lawmakers this year are expected to pass a bill criminalizing the posting of nonconsensual pornographic deepfakes on the internet. It will penalize the posters with prison time and the platforms with fines if they don't remove the fake pictures quickly enough.

The proposed Take It Down Act, which passed in the Senate in the last Congress with bipartisan support, wouldn't outlaw the apps themselves. So San Francisco City Attorney David Chiu last year tried to tackle the root cause. He brought a first-of-its-kind lawsuit charging the deepfake app creators, arguing they broke federal and state revenge and child pornography rules and broke California's competition law. The apps named in the lawsuit have either closed or appear to be operating under different names. Some have geofenced their services so they can't be accessed in the state. Out of 16 apps named, representatives of only one of them have responded to Chiu's complaint.

It turns out finding a real person to serve papers to, or in our case—ask questions of—is an almost impossible task. The irony that the owners of these services are often able to operate anonymously while they make money from exposing others wasn't lost on Olivia and me. As we tried to track down the people behind the latest, fastest deepfaking apps, we learned that the competitors in this rapidly growing industry had more in common than meets the eye.

The Take It Down Act doesn't take aim at the deepfake providers (perhaps to avoid questions of censorship, which must be taken into account, too). But teachers, schools and parents told us that—clear harms to the victims aside—the ease with which children can access these apps allows them to create sexually abusive material without fully grasping the consequences. They questioned whether there needs to be more accountability on the app maker's side, too—to make it harder for these services to end up on young people's phones.

Our first episode of Levittown is out today, with more coming this weekend. I hope you check it out to understand how the side effects of some of the most cutting-edge technologies are having a huge impact on young people—and join us on a wild journey around the shadowy corners of the internet.

In Brief

'An Aspiring Space Station Company'

Haven-1's primary structure awaiting further testing at Vast's Mojave facility. Photographer: Balazs Gardi for Bloomberg Businessweek

Jed McCaleb made a fortune in cryptocurrency. Now he's prepared to lose a big chunk of it in space.

The billionaire who was behind the infamous Mt. Gox Bitcoin exchange and the cryptocurrency XRP is the sole financial backer of a wildly ambitious effort to build the world's first commercial space station and send it into orbit.

If he succeeds, his startup, Vast Space LLC, will be well-positioned to win a lucrative contract from NASA next year—potentially worth billions of dollars—to replace the International Space Station. If it's a bust, McCaleb says, he's fully prepared to lose $1 billion of his fortune. McCaleb controls billions partly via two foundations, which reported a total of $3.3 billion in assets at the end of 2023, funded by his own donations.     

"It's super important that people take this leap from where we are today to this potential world where there's a lot of people living off the Earth," McCaleb, 50, says at the company's headquarters in Long Beach, California. "There's not that many folks that are willing to dedicate the amount of resources and time and risk tolerance that I am."

Crafting and launching a space station that can keep humans alive comfortably in orbit is no easy feat. Kiel Porter and Loren Grush write about McCaleb's attempt: One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream

Hanging On at Tesla

50%
That's how much Tesla stock has fallen in the past three months. In an all-hands meeting on Thursday, CEO Elon Musk sought to reassure employees during what he referred to "a little bit of stormy weather," and encouraged them to hang on to the carmaker's stock. Bonus listening: On a special episode of Elon, Inc., Musk Watch author Judd Legum explains how he sifts through the flood of news made by Trump's right-hand man.

Economic Accountability

"The Trump administration owns this economy from the moment they started doing all these tariff threats."
Kimberly Clausing
Senior official in the Treasury Department under the Biden administration, now at the Peterson Institute for International Economics
President Donald Trump said his first day in office marked the start of a "golden age" for the US. He and his advisers now say it could take months or longer to arrive.

More From Bloomberg

Like Businessweek Daily? Check out these newsletters:

  • Business of Space for inside stories of investments beyond Earth
  • CFO Briefing for what finance leaders need to know
  • CityLab Daily for today's top stories, ideas and solutions from cities around the world
  • Tech In Depth for analysis and scoops about the business of technology
  • Green Daily for the latest in climate news, zero-emission tech and green finance

Explore all Bloomberg newsletters.

Follow Us

Like getting this newsletter? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and subscriber-only insights.

Want to sponsor this newsletter? Get in touch here.

You received this message because you are subscribed to Bloomberg's Businessweek Daily newsletter. If a friend forwarded you this message, sign up here to get it in your inbox.
Unsubscribe
Bloomberg.com
Contact Us
Bloomberg L.P.
731 Lexington Avenue,
New York, NY 10022
Ads Powered By Liveintent Ad Choices

No comments:

Post a Comment

Brussels Edition: It’s 20%

For the EU, the key number was 20% View in browser Welcome to the Brussels Edition ,...