State officials are warning residents about a rise in sophisticated investment scams spreading across social media platforms, including Facebook, Instagram, and WhatsApp.
Attorney General Letitia James say scammers are increasingly using deceptive ads, impersonation, and artificial intelligence tools like deepfakes to lure victims into fraudulent investment schemes, often targeting savings and retirement funds.
The alert highlights several common tactics, including “pump and dump” schemes where scammers artificially inflate the value of a stock or cryptocurrency before selling off, leaving investors with losses. Other schemes involve building trust with victims over time through fake investment platforms that appear legitimate before draining funds.
Authorities say many scams begin with ads featuring well-known public figures or financial experts — often without their consent — promising guaranteed returns or exclusive opportunities. Victims are frequently moved to private messaging platforms like WhatsApp or Telegram, where scammers operate outside moderation.
The attorney general’s office is urging New Yorkers to remain cautious, emphasizing that legitimate investment professionals rarely promote specific opportunities through social media ads. Warning signs include promises of risk-free returns, high-pressure tactics, requests to move conversations off-platform, and demands for cryptocurrency payments.
Officials also cautioned that advances in AI are making scams harder to detect, with deepfake videos and manipulated content used to mimic trusted figures.
Residents are encouraged to verify credentials independently, consult trusted advisors before investing, and report suspicious activity to the attorney general’s office.
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