08/29/2024 | Press release | Distributed by Public on 08/29/2024 10:59
NEW YORK - New York Attorney General Letitia James today issued an investor alert warning New Yorkers about scams that are luring potential investors with fake videos created with artificial intelligence (AI) to show celebrities and business leaders touting fraudulent investment schemes. These AI-manipulated videos, known as deepfakes, often appear in social media feeds, digital ads, and messaging apps and are expected to fuel billions of dollars in fraud every year. After receiving complaints from New Yorkers about these videos and their associated scams, the Office of the Attorney General (OAG) is urging New Yorkers to follow tips to protect themselves and to report this misleading content to law enforcement and the social media platforms they appear on.
"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 that show wealthy individuals like Elon Musk, Jeff Bezos, and Warren Buffet apparently touting the scammers' investment schemes, which often involve cryptocurrency. Scammers use AI tools to manipulate existing videos to change the voice and mouth movements of the individuals to create seemingly genuine endorsements for their frauds. These videos are then served to social media users as advertisements or broadcast as fake livestreams on platforms like YouTube. Scammers may also pose as government officials or other people in order to gain victims' trust. The accessibility of AI tools allows scammers to produce ads for their frauds at scale with a variety of impersonations to target a wide range of potential victims. It can be difficult to tell from the video alone if it is a deepfake.
Once their victims show interest in the supposed investment, scammers may try to move the conversation off of public social media into encrypted private messaging services such as Whatsapp or Signal. After the victims have made an initial investment on the fraudulent platforms described in the ads, scammers will often create fake websites showing the investment increasing in value and encourage victims to send more money. After making more investments, sometimes totaling hundreds of thousands of dollars, victims will be unable to withdraw their funds or will be asked to pay more in withdrawal fees or "taxes." Eventually, the scammers will cut off contact, having pocketed the victim's money from the first investment. Even worse, victims may be later contacted by services that suggest they can retrieve their funds, only to end up draining more of the victims' net worth.
Attorney General James recommends that New Yorkers take the following steps to avoid becoming the victim of a deepfake investment scam:
Attorney General James encourages anyone who may have been a victim of this type of scam to report it to OAG by filing a complaint online or calling 1-800-771-7755. Any identifying information provided to OAG will be protected according to law and policies on the safeguarding of identifying information.