AG James warns of AI-generated fake videos in which celebrities promote investment scams

By SÍLE MOLONEY

New York Attorney General Letitia James issued an investor alert on Aug. 29, warning New Yorkers about scams that lure potential investors with fake videos created using artificial intelligence (AI). These videos purport to show celebrities or wealthy business leaders promoting investment schemes that are actually fraudulent. James said the videos, known as deepfakes, frequently appear in social media feeds, digital ads and messaging apps and are expected to result in billions of dollars in fraud each year.

It urges New Yorkers to heed tips to protect themselves from such scams and to watch for warning signs, including promises of guaranteed returns on investment, requests for immediate investments or warnings of missed opportunities, obvious investment solicitations from celebrities or other famous people, requests to send cryptocurrency to a non-Bitlicensed platform or a private wallet, and requests to move public social media conversations to encrypted, private messaging platforms.

James also recommends that New Yorkers search the Internet for seller reviews and verify the address provided by a seller. New Yorkers can check the registration of investment professionals at:

She also advised citizens to be cautious of livestreams or other video/audio messages designed to persuade citizens to invest, even if they appear to be livestreams, as they could be deepfakes. The Attorney General said to do a reverse search of the footage used and check reliable sources for previous interviews of the speaker. She added that scammers often use footage from an existing, real public video or audio.

James urged residents not to give out personal details, financial information, login information, etc. to people they have only met online. If a request appears to be from a known contact, they should check that contact's profile and contact them by alternative means, such as a phone call, to confirm.

To prevent scammers from impersonating any contacts, James urged citizens to change their profile settings to keep their friends list, photos, videos, posts and even comments private and not to click on links in emails or direct messages unless the identity of the sender has been verified.

The attorney general also said people should be cautious of unsolicited investment offers, especially those received via email, social media or telephone, adding that reputable firms would not aggressively pressure potential investors to make quick decisions or disclose confidential information through such channels.

She also recommended enabling multi-factor authentication (MFA) on all accounts, especially financial and email accounts. MFA requires more than one verification method, making it much harder for fraudsters to access people's accounts – even when using sophisticated techniques like deepfakes.

James also said it is important to remember that such transactions are almost always irreversible and urged any residents who decide to invest to keep all records and communications.

“Sophisticated fraudsters are using AI to pose as trustworthy businesspeople and swindle vulnerable New Yorkers out of their hard-earned money,” said James. “Manipulated videos promoting fake investment scams are spreading like wildfire on social media, and New Yorkers should know how to avoid falling victim to these schemes.”

Anyone who may have been a victim of such a scam should report it to the Attorney General's office using the link below or by calling 1-800-771-7755. James said any identifying information submitted to her office by residents will be protected in accordance with laws and policies protecting identifying information.