New York officials warn that AI deepfakes and fake crypto projects are making investment scams more deceptive.

Huoxing Finance reports that New York state officials have warned that AI-generated content and fraudulent crypto projects are making investment scams more deceptive. Investment fraud losses have exceeded $8.1 billion, a 38% increase 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 has previously warned that scammers lure investors through deepfake endorsements by celebrities, fake cryptocurrencies, pump-and-dump schemes, and fraudulent trading platforms. Some fake platforms display fabricated account balances, returns, and transaction histories, and allow victims to withdraw small amounts to build trust before demanding additional funds or fees. New York state officials advise consumers to verify the identities of promoters, companies, and investment projects, and confirm where their funds are going. According to data from the U.S. Federal Bureau of Investigation (FBI), reported losses from cybercrime totaled $20.877 billion, with $11.37 billion in losses specifically tied to cryptocurrency-related complaints. Common red flags include promises of high returns, unsolicited investment offers, high-pressure sales tactics, and projects lacking clear documentation.