PHILADELPHIA (KYW Newsradio) — Pennsylvania’s Attorney General is sounding the alarm on Facebook and Instagram investment scams that often use AI-generated photos or videos.
Attorney General Dave Sunday said the scams use deepfake videos of well-known and successful investors or AI-doctored images to appear associated with a reliable company, so people click through.
Referred to as a “pump-and-dump scam,” users are pushed to group chats on WhatsApp or Telegram, where the conversations can’t be tracked, and they’re pressured into buying large amounts of stock or cryptocurrency. When the stock or crypto price increases, scammers sell off all the shares they already owned and the victims lose their investment when the price plummets.
When someone tries to withdraw profits, they are often told about fees or taxes that have to be paid. Once those fees are paid, the scammers find other excuses why they can’t return the money.
Sunday said no investment is risk-free, and any promises of guaranteed returns should be a red flag.
He said friend lists on social media should be kept private so a scammer can’t create a fake account of someone you know or use them to try to build a relationship. He also said if you get a request from a friend with an investment tip, verify with that person outside of social media.
