Deepfake investment scams target investors on Meta platforms
Scammers are using AI-generated deepfake videos and images of celebrities on Meta platforms to lure investors into pump-and-dump schemes and confidence scams. North Carolina's Attorney General has issued a warning and urged Meta to strengthen its advertisement review practices to prevent fraudulent schemes from targeting consumers.
What happened
Scammers are using deepfake technology to create fake videos and images of celebrities and well-known figures on Facebook, Instagram, and WhatsApp to promote fraudulent investment schemes.
Two common scam types are pump-and-dump schemes, where victims are pressured to buy low-priced stocks or cryptocurrency that scammers later sell at high prices, and confidence scams, where fraudsters build trust before directing victims to fake investment platforms that steal their money.
Reported impact
Victims experience financial losses when investment schemes fail or when they cannot withdraw funds despite being told to pay additional fees.
Deepfake advertisements using images of figures like Kevin O'Leary, Cathie Wood, and Joe Kernen without permission are being deployed to gain investor trust and attract victims.
Index analysis
The scams exploit common trust-building tactics, including fake celebrity endorsements, promises of guaranteed returns, high-pressure tactics to act immediately, and requests to move conversations to encrypted messaging apps.
Meta's ad review practices have been insufficient to prevent these fraudulent advertisements from appearing on its platforms.
Governance controls
North Carolina Attorney General Jeff Jackson issued a public warning about these scams and is pushing Meta to strengthen its ad review practices to prevent fraudulent investment advertisements.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.