Deepfake-based investment scams on Meta platforms across US states
State attorneys general in the US warned of a rise in investment fraud schemes on Meta platforms that use deepfake technology to impersonate public figures and financial advisers. The scams lure victims into pump-and-dump and cryptocurrency schemes designed to drain their savings.
What happened
Scammers are using deepfake technology to create fraudulent investment schemes on Meta platforms including Facebook, Instagram and WhatsApp. The scams include pump-and-dump schemes, confidence scams and fraudulent cryptocurrency investments, using deceptive ads and deepfakes to impersonate recognizable public figures without permission or lesser-known financial advisors.
Reported impact
The fraudulent schemes are designed to drain victims' savings. Victims are lured through ads into investment groups, convinced to move conversations to encrypted platforms, and guided to fake trading websites where they are pressured to make large investments that they ultimately lose.
Index analysis
Scammers inflate prices of low-priced stocks or cryptocurrencies through hype, then sell at a profit while victims lose money when prices plummet. In confidence scams, fake platforms appear to generate profits, convincing victims to invest more money, but when victims attempt to withdraw funds, scammers demand fees or taxes and eventually disappear.
Governance controls
The New Hampshire Attorney General stated that legitimate brokers and investment advisers rarely advertise specific opportunities on social media. Officials are urging residents to closely scrutinize any investment promoted on social media, verify opportunities through FINRA BrokerCheck, research complaints, and consult trusted financial advisers.
Officials also recommend caution regarding deepfake videos, protecting personal information, and avoiding granting remote access. Illinois Attorney General Kwame Raoul stated there is a worrying trend of bad actors using social media to purposely lure consumers into investment groups intent on scamming them.
Classification
Sources and evidence
Sources not yet published
This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.