NEW YORK (1010 WINS) – As artificial intelligence becomes more sophisticated, scammers are increasingly using deepfake videos featuring the faces of famous figures to create convincing investment schemes, prompting New York Attorney General Letitia James to issue a warning about this growing threat on Thursday.
Deepfakes are highly realistic images, videos, or audio recordings manipulated using AI to deceive viewers. They can be so convincing that it’s difficult to distinguish between what’s real and what’s fake, making them an effective tool for disinformation and fraud. These videos often circulate on social media feeds, digital ads, and messaging apps, and are expected to fuel billions of dollars in fraud each year.
According to a McAfee survey, 70% of people aren’t confident they can tell the difference between a real and cloned voice.
James issued a warning after her office received numerous complaints from New Yorkers about deepfake videos and scams.
“Sophisticated scammers are using AI to impersonate trusted business leaders and scam vulnerable New Yorkers out of their hard-earned money,” James said. “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.”
Some of these videos feature well-known figures like Elon Musk, Jeff Bezos, and Warren Buffett praising and endorsing the scammers’ investment schemes, which often involve cryptocurrency.
Deepfake fraud surged more than tenfold worldwide from 2022 to 2023. According to internal data from Sumsub, 88% of these cases were in the crypto sector, with another 8% in fintech.
These artificially created figures are shown endorsing the scammers’ investments, with the videos being distributed as advertisements or broadcast as fake livestreams on platforms like YouTube. Scammers may also pose as government officials or other trusted individuals to deceive victims, James said.
For example, in June, a YouTube livestream featuring a deepfake of Musk ran for five hours, presenting what appeared to be a Tesla conference. The stream, which was pushing a cryptocurrency scam, attracted over 30,000 viewers, initially reported by Engadget. It even reached the top of YouTube’s Live Now recommendations, though the viewer count may have been inflated by bots. Both the video and the channel were removed after Engadget notified Google.
The Office of the Attorney General further warned that once victims are hooked on the fake investment, scammers often move the conversation to private, encrypted messaging services like WhatsApp or Signal. After victims make an initial investment on the fake platforms, scammers create fake websites showing the investment growing and encourage victims to send more money.
As victims continue to invest, sometimes hundreds of thousands of dollars, they eventually find themselves unable to withdraw their funds or are asked to pay additional fees or “taxes.” In the end, the scammers cut off contact, taking the victim’s money. On top of this, victims might later be approached by services claiming they can recover the lost funds, only to be scammed again.
The OAG offerred practical tips to help New Yorkers avoid falling victim to deepfake investment scams:
Watch for red flags: Be cautious of promises of guaranteed returns, pressure to invest immediately, or investment requests from celebrities. Also, be wary if asked to send cryptocurrency to unlicensed platforms or private wallets, or if the conversation is moved to encrypted messaging apps like WhatsApp or Signal.
Research: Before investing, search for reviews about the salesperson and verify any physical address they provide. Use FINRA’s BrokerCheck to confirm the registration of investment professionals. Be careful with livestreams or video messages promoting investments—they could be deepfakes. Always check reliable sources for previous interviews with the speaker to ensure authenticity.
Protect personal information: Avoid sharing personal or financial details with people you’ve only met online. If you receive an investment solicitation from someone you know, double-check it’s really them by reviewing their profile and contacting them through another method, like a phone call. Adjust privacy settings to keep your friends list, photos, and posts private, and don’t click on links in emails or messages unless you’re sure of the sender’s identity.
Be cautious with unsolicited offers: Legitimate firms don’t pressure investors to make quick decisions or share sensitive information through email, social media, or phone calls.
Secure all accounts: Enable Multi-Factor Authentication (MFA) on all accounts, especially those related to finance and email. Keep records of all investments, including paperwork and communications, as these transactions are often irreversible.