The alert, issued on April 6, 2026, warns that scammers are using misleading advertisements and artificial intelligence-generated deepfake videos to target investors with pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency plans designed to steal victims' savings. These sophisticated schemes exploit the names of trusted financial leaders and celebrities without their consent to give the appearance of legitimacy.
"Scammers are using social media to exploit the names of trusted financial leaders and celebrities with the goal of stealing New Yorkers' hard-earned savings," James said in the alert. "From fake investment platforms to deepfake celebrity endorsements and fraudulent cryptocurrencies, these schemes are becoming increasingly sophisticated. I urge everyone to stay vigilant, be wary of any investment ad on social media, and remember: if an investment seems too good to be true, it probably is a scam."
The attorney general detailed how pump-and-dump schemes typically follow a three-step process: "The Bait" involves misleading ads on Facebook or Instagram using recognized figures like Cathie Wood, Joe Kernen, or Kevin O'Leary without consent; "The Switch" pressures users to move conversations to encrypted platforms like WhatsApp or Telegram; and "The Hook" directs victims to group chats where they receive fake expert advice and testimonials before being coerced into buying stocks or cryptocurrencies that scammers later sell at inflated prices.
The alert also warns about confidence scams where fraudsters establish trust with victims and convince them to invest using fake investment platforms. These schemes often start with small investments that show artificial profits on professional-looking cloned platforms, eventually leading victims to invest larger sums or even borrow money from friends and family before the scammers disappear with the funds.
James provided extensive guidance for protecting against social media investment scams, including identifying red flags such as guaranteed returns, high-pressure tactics, celebrity endorsements, cryptocurrency demands, and requests to switch platforms. The attorney general emphasized that reputable brokers and investment advisors typically do not promote specific investment advice on social media platforms, and urged investors to verify credentials using FINRA's BrokerCheck system.
The alert comes as social media platforms host billions of fraudulent advertisements daily, with Meta's platforms becoming increasingly popular venues for sophisticated investment fraud. James noted that most fraudulent transactions, especially those involving cryptocurrencies, are irreversible, and warned that supposed asset recovery specialists who contact victims may themselves be scammers seeking to exploit the situation further.
New Yorkers who believe they may have been victims of such scams are urged to report to the Attorney General's Office online or by calling 1-800-771-7755, with all identifying information protected under state law and the office's information safeguarding policies.