New York Attorney General Letitia James issued an investor alert today, warning New Yorkers about scams involving fake videos created with artificial intelligence (AI). These AI-manipulated videos, known as deepfakes, feature celebrities and business leaders promoting fraudulent investment schemes. The Office of the Attorney General (OAG) has received complaints from New Yorkers about these scams and is urging residents to follow protective measures and report misleading content to law enforcement and social media platforms.
“Sophisticated scammers are using AI to impersonate trusted business leaders and scam vulnerable New Yorkers out of their hard-earned money,” said Attorney General James. “Manipulated videos advertising phony investment scams are spreading like wildfire on social media, and New Yorkers should know how to avoid falling victim to these schemes. I encourage anyone who encounters these types of scams to contact my office.”
Deepfake investment scams target victims online with AI-manipulated videos showing wealthy individuals like Elon Musk, Jeff Bezos, and Warren Buffet endorsing fraudulent investment schemes, often involving cryptocurrency. Scammers use AI tools to alter existing videos by changing voice and mouth movements to create seemingly genuine endorsements. These videos appear as advertisements or fake livestreams on platforms such as YouTube. Scammers may also pose as government officials or other figures to gain trust.
Once victims show interest in the supposed investments, scammers often move conversations from public social media to encrypted private messaging services like WhatsApp or Signal. After an initial investment on fraudulent platforms described in the ads, scammers create fake websites showing increasing investment value and encourage further investments. Victims may end up investing hundreds of thousands of dollars but will be unable to withdraw funds or will face demands for additional fees or "taxes." Eventually, scammers cut off contact after pocketing the victim’s money.
Attorney General James recommends that New Yorkers take steps to avoid becoming victims of deepfake investment scams:
- Look out for red flags such as promises of guaranteed returns, urgent demands for immediate investments, requests from celebrities or famous people, demands for cryptocurrency sent to non-bitlicensed platforms or private wallets.
- Conduct due diligence by searching for reviews about salespersons and verifying any provided physical addresses.
- Be wary of livestreams or video/audio messages persuading you to invest; they could be deepfakes.
- Do not provide personal information or financial details online without verification.
- Verify solicitations from known contacts through alternate communication methods.
- Avoid clicking links in unsolicited emails or direct messages unless confirming the sender's identity.
- Be cautious with unsolicited investment opportunities via email, social media, or phone calls; legitimate firms do not aggressively push quick decisions.
- Enable Multi-Factor Authentication (MFA) on accounts related to finance and email.
Transactions related to these scams are typically irreversible. If deciding to invest, keep all paperwork and preserve communications.
Attorney General James encourages anyone who may have been a victim of this type of scam to report it by filing a complaint online or calling 1-800-771-7755. Identifying information provided will be protected according to law and policies on safeguarding identifying information.