David Rosenberg on AI-Powered Investment Scams and Deepfakes

The Rise of AI-Driven Investment Scams

• ⚠️ Investment scams using AI and deepfakes are defrauding individuals by promising high returns on fake stock recommendations.
• 💡 Scammers are leveraging the likeness and voice of prominent figures like David Rosenberg to create convincing fraudulent advertisements.
• 💰 Victims have lost hundreds of thousands of dollars, with some schemes, like "pig butchering," luring individuals into elaborate crypto investment frauds.

Scale of the Problem

• 📈 The FBI reports that crypto investment scams alone cost Americans $9.3 billion in 2024, a 66% increase from the previous year.
• 💸 David Rosenberg estimates that scams impersonating him have led to over $5 million in theft.
• 📞 Rosenberg's firm receives daily calls from individuals, not even clients, who have lost significant portions of their life savings, sometimes up to $200,000.

Tactics Used by Scammers

• 🎭 Scammers employ AI bots to impersonate individuals in print, picture, and video formats, often using firm logos and fake assistants.
• 📈 "Pump and dump" schemes are used, where fake promotions drive up the price of illiquid penny stocks, allowing scammers to profit when they sell.
• 🃏 The tactics are compared to counting cards in Vegas, where scammers increase their bets before dumping the stock, leaving victims with worthless assets.

Challenges in Combating Scams

• 📢 Public awareness is crucial, as scammers lure victims through false advertisements on platforms like Instagram and Facebook.
• 🚫 A significant problem is that platforms like Meta (Facebook, Instagram) and TikTok are not taking down these fake ads.
• 💰 This inaction is attributed to Meta deriving revenue from these fraudulent ads, creating a dangerous environment for investors.
• 🗣️ David Rosenberg is committed to increasing public awareness to combat these pervasive technological threats.