NY AG: Investment scam with AI videos targets New Yorkers

NEW YORK – The New York Attorney General’s Office is warning New York State residents about deepfake videos using artificial intelligence that feature celebrities attempting to scam people into investing in fraudulent investment schemes.

These AI-manipulated videos, known as “deepfakes,” frequently appear in social media feeds, digital ads and messaging apps and are likely to result in billions of dollars in fraud each year, officials said.

Fraudsters use AI tools to manipulate existing videos to change people’s voices and mouth movements to create seemingly real evidence of their scams.

After receiving complaints from New Yorkers about these videos and the scams associated with them, the New York Attorney General’s Office released self-protection tips and urged citizens to report any potential scams to law enforcement.

“Sophisticated fraudsters are using AI to pose as trustworthy businesspeople and defraud vulnerable New Yorkers of their hard-earned money,” said Attorney General Letitia James. “Manipulated videos promoting bogus 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 this type of scam to contact my office.”

Once their victims show interest in the supposed investment, scammers may try to shift the conversation from social media to encrypted private messaging services like WhatsApp or Signal. After victims make an initial investment on the fraudulent platforms described in the ads, scammers often create fake websites that advertise the value of the investment and prompt victims to send more money, officials said.

Victims are unable to withdraw their money or are forced to pay higher withdrawal fees or “taxes.” Finally, the scammers cut off contact after pocketing the victim’s money from the initial investment. Worse, victims may later be contacted by services promising to retrieve their money, only to end up siphoning off even more of the victim’s assets.

To avoid falling victim to a deepfake investment scam, New Yorkers can take the following steps:

• When considering investments, look out for the following warning signs:
  • Promise of a guaranteed return on your investment.
  • Request to invest immediately or warning that you will miss the opportunity.
  • Investment requests from celebrities or other famous people.
  • Requires you to send cryptocurrency to a non-bitlicensed platform or private wallet.
  • Requests to move public conversations to encrypted private messaging platforms.
• Do your due diligence by searching for reviews of the seller online and checking the mailing address provided by the seller.
• You can verify your registration as an investment professional with FINRA’s BrokerCheck.
• Be cautious of any livestream or other video/audio message you receive trying to persuade you to invest. Even if it looks like a livestream, it could actually be a deepfake.
• To do a reverse search on the footage used, check reliable sources for previous interviews with the speaker. Scammers often use footage from an existing public video or audio.
• Do not share personal information, financial information, login credentials, etc. with people you met exclusively online.
• If a request comes from one of your known contacts, make sure it is your actual contact by checking their profile and contacting them using an alternative form of communication, such as a phone call.
• To prevent scammers from impersonating your contacts, change your profile settings to keep your friends list, photos, videos, posts, and even comments private.
• Do not click on links in emails or direct messages unless you have verified the identity of the sender.
• Be wary of unsolicited investment opportunities, especially those that come via email, social media, or phone calls. Reputable companies will not aggressively pressure potential investors into making quick decisions or reveal confidential information through these channels.
• Enable multi-factor authentication (MFA) on all your accounts, especially financial and email accounts. MFA requires more than one verification method, making it much harder for fraudsters to access your accounts—even if they use sophisticated techniques like deepfakes.
• Please note that these transactions are almost always irreversible. If you decide to invest, keep all your records and communications.

Anyone who may have fallen victim to this type of fraud can report it to the OAG by filing a complaint online or by calling 1-800-771-7755. All identifying information submitted to the OAG will be protected in accordance with laws and policies protecting identifying information.