New York Attorney General Letitia James warns of online AI video investment scams
If you see a video of a celebrity asking you to invest, it may be an AI-created deepfake, said New York Attorney General Letitia James. Credit: Newsday/John Paraskevas
If you see Elon Musk, Jeff Bezos or Warren Buffett touting an investment opportunity in a video on social media, New York State Attorney General Letitia James wants you to contact her office.
Scammers are luring potential investors with fake videos created with artificial intelligence, James said in a news release Thursday. The videos show business leaders and celebrities promoting fraudulent investment schemes that have the potential to draw in billions of dollars, she said.
The AI-manipulated videos — known as deepfakes — often appear in social media feeds, digital ads and messaging apps, and came to James’ attention after complaints from New Yorkers.
"Sophisticated scammers are using AI to impersonate trusted business leaders and scam-vulnerable New Yorkers out of their hard-earned money," James said in the release. "Manipulated videos advertising phony investment scams are spreading like wildfire on social media ... "
Deepfake investment scams target victims online with schemes that often involve cryptocurrency, with scammers using AI tools to manipulate existing videos to change the voice and mouth movements of the people touting the scams to create the phony endorsements. The videos are then posted on social media platforms such as YouTube, where scammers also may pose as government officials or other people to gain their victim’s trust, the release said.
Once a victim shows interest in the supposed investment, scammers may try to move the conversation off social media and onto encrypted private messaging services such as WhatsApp.
When the victims make an initial investment on the fraudulent platforms described in the ads, they are often sent to fake websites showing the investment increasing in value and encouraging victims to send more money. And after making more investments — sometimes totaling hundred of thousands of dollars — victims will be unable to withdraw their money or will be asked to pay more in withdrawal fees or "taxes."
Wendy Lanton, chief compliance officer for the Herold & Lantern Investments consultant firm in Melville, said that investment scams are everywhere, and they're a source of "ongoing concern in the marketplace."
Some of the worst are scam websites, Lanton said.
"Random websites send random emails, and when you see the communication, it looks legitimate," Lanton said. "It’s very prevalent and very scary."
"Young people and the elderly are very impressionable in the marketplace," Lanton said.
To filed a complaint with James' office, call 800-771-7755.
If you see Elon Musk, Jeff Bezos or Warren Buffett touting an investment opportunity in a video on social media, New York State Attorney General Letitia James wants you to contact her office.
Scammers are luring potential investors with fake videos created with artificial intelligence, James said in a news release Thursday. The videos show business leaders and celebrities promoting fraudulent investment schemes that have the potential to draw in billions of dollars, she said.
The AI-manipulated videos — known as deepfakes — often appear in social media feeds, digital ads and messaging apps, and came to James’ attention after complaints from New Yorkers.
"Sophisticated scammers are using AI to impersonate trusted business leaders and scam-vulnerable New Yorkers out of their hard-earned money," James said in the release. "Manipulated videos advertising phony investment scams are spreading like wildfire on social media ... "
Deepfake investment scams target victims online with schemes that often involve cryptocurrency, with scammers using AI tools to manipulate existing videos to change the voice and mouth movements of the people touting the scams to create the phony endorsements. The videos are then posted on social media platforms such as YouTube, where scammers also may pose as government officials or other people to gain their victim’s trust, the release said.
Once a victim shows interest in the supposed investment, scammers may try to move the conversation off social media and onto encrypted private messaging services such as WhatsApp.
When the victims make an initial investment on the fraudulent platforms described in the ads, they are often sent to fake websites showing the investment increasing in value and encouraging victims to send more money. And after making more investments — sometimes totaling hundred of thousands of dollars — victims will be unable to withdraw their money or will be asked to pay more in withdrawal fees or "taxes."
Wendy Lanton, chief compliance officer for the Herold & Lantern Investments consultant firm in Melville, said that investment scams are everywhere, and they're a source of "ongoing concern in the marketplace."
Some of the worst are scam websites, Lanton said.
"Random websites send random emails, and when you see the communication, it looks legitimate," Lanton said. "It’s very prevalent and very scary."
"Young people and the elderly are very impressionable in the marketplace," Lanton said.
To filed a complaint with James' office, call 800-771-7755.
How to avoid being scammed
New York State Attorney General Letitia James provided some tips on how to avoid becoming a victim of deepfake investment scams. They include:
- Look out for red flags such as promises of guaranteed returns on your investment, demands to invest immediately, warnings that you will miss out on the opportunity, requests to invest by celebrities or other famous people, and requests to move public conversations to encrypted private messaging platforms.
- Search the internet for reviews about the "salesperson" and verify any physical address provided by that person.
- Do not provide any personal information, financial information, or log in credentials to individuals that you have only met online.
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