New Yorkers warned: Beware of Investment Scams Using AI-Manipulated Videos

New York State officials have 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.

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.

According to officials, 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.

Anyone who may have been a victim of this type of scam is urged report it to local law enforcement or to the New York State Attorney General by filing a complaint online or calling 1-800-771-7755.