New York Officials: AI Deepfakes and Fake Crypto Projects Make Investment Scams More Deceptive

New York officials warned that AI-generated content and fake crypto projects are making investment scams more deceptive. Investment fraud losses exceeded $8 billion, up 38% from 2024, with 144,041 consumers reporting losses and a median loss of $10,560 per incident. AI can be used to clone voices, forge videos, impersonate financial professionals, and create social media advertisements. New York Attorney General Letitia James warned that scammers lure investors through celebrity deepfake endorsements, fake cryptocurrencies, pump-and-dump schemes, and fraudulent trading platforms. Some fake platforms display fabricated account balances, returns, and trading records, and allow victims to make small withdrawals to build trust, then demand additional funds or fees. New York officials advised consumers to verify the identity of promoters, companies, and investment projects, and to confirm where funds are going. FBI data shows reported cybercrime losses of $20.877 billion, of which cryptocurrency-related complaint losses totaled $11.37 billion. Common scam signs include promises of high returns, unsolicited investment opportunities, high-pressure sales tactics, and projects lacking clear documentation.