DFR warns investors about AI-powered investment scams

AI tools can be useful for learning about investing and financial products, but fraudsters are using technology to make investment scams look more legitimate and reach potential victims more easily.

"Artificial intelligence may make a scam look more sophisticated, but the warning signs of investment fraud remain familiar," said Oregon Insurance Commissioner and DFR Administrator TK Keen. "Consumers should slow down, independently verify who they are dealing with, and never let pressure or fear of missing out drive an investment decision. Always remember that if the investment sounds too good to be true, it probably is."

DFR is warning consumers about several common AI-related scams:

• Deepfakes and impersonation: Scammers can create realistic videos or audio of celebrities, public figures, financial professionals, friends, or family members promoting investments, including those promising unusually high or guaranteed returns.
• AI and cryptocurrency trading schemes: Fraudsters may advertise supposedly proprietary or guaranteed AI trading systems. Victims can be directed to fake platforms that display fabricated account balances or profits and then pressured to send additional money, often in cryptocurrency.
• AI voice and messaging scams: Voice-cloning technology can make calls or messages appear to come from someone the victim knows or trusts. Unsolicited investment recommendations should be independently verified.
• Romance scams: Fraudsters can use AI-generated images and chatbots to create convincing dating profiles and build relationships before persuading victims to invest in cryptocurrency, startups, or other purported opportunities.

Consumers should be particularly cautious about unsolicited investment offers, online advertisements featuring celebrities or public figures, unusual facial or body movements in videos, awkward or unnatural voice messages, requests for cryptocurrency payments, reluctance to meet or verify credentials, and websites that mimic legitimate financial firms.

DFR recommends that consumers:

• Pause before investing. Scammers often use urgency and fear of missing out to pressure victims into making quick decisions.
• Verify registration. Confirm that the person or company offering an investment is properly registered. Registration does not guarantee an investment is risk-free, but an unregistered seller is a significant warning sign.
• Research independently. Search for the investment company, the individual making the offer, and their contact information. Do not rely solely on information provided by the person pitching the investment.
• Do not rely on AI alone. AI tools can produce inaccurate, outdated, or fabricated information. Consumers should cross-check investment claims with reliable sources and consult a registered investment professional when appropriate.
• Verify unexpected communications. If a message, call, or video appears to come from a financial adviser, friend, or family member, contact that person through a trusted, independent method before acting.

Consumers who suspect they have been targeted by an AI investment scam should report the activity to DFR and appropriate authorities, including the Oregon Department of Justice or the Federal Trade Commission. Reporting suspected fraud can help regulators identify emerging scams and protect other consumers.

DFR also warns consumers to be cautious of anyone offering to recover money lost in an investment scam. Such offers can be another scam targeting victims who have already lost money. To report suspected investment fraud or if you have been a victim of a scam, contact DFR at 1-888-877-4894 or email [email protected].

###

About Oregon DFR: The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon's largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.