Los Angeles, CA — Brian Foster, a 42-year-old freelance analyst, recently faced the increasingly common mutating threat of investment scams in AI deepfake videos. The bogus video shared in a private Facebook group impersonated a popular financial influencer promoting some micro-cap stock worth a classic pump-and-dump scheme.

“The video was so convincing — the voice, charts, even live comments looked real,” Foster said. “It felt like an exclusive tip meant just for me.”

Motivated by the apparent legitimacy, Foster invested nearly $18,000. The stock’s value surged briefly, then plummeted within days, wiping out most of his funds.

Realizing he had been misled, Foster sought help from a specialized recovery service experienced in investment fraud cases. The recovery team explained how scammers now use AI to produce fake endorsements that can easily fool investors.

“They were honest and didn’t make unrealistic promises,” Foster said. “They laid out a clear plan to try to recover some of my money

Using advanced financial tracing and blockchain analytics, the team tracked the movement of Foster’s funds through various accounts, recovering a portion of his investment.

Experts warn that scams leveraging AI deepfakes are on the rise, especially in California, which sees the highest number of investment fraud complaints in the U.S.

“Social media has become a major channel for these scams,” said Lisa Nguyen, a financial fraud analyst. “AI technology presents new challenges for investors in identifying fake endorsements.”

Investors should be urged to ensure that all stock tips are verified with their own due diligence, heed not to pressure to act quickly, and to exercise caution with unsolicited advice given in private chat groups.

He also urged everyone to stay alert: “Do your research and only invest what you can afford to lose.”

With frauds generated by AI being on the rise, experts simply promote education and vigilance as the two pillars for investor protection.