The Securities and Exchange Commission (SEC) has issued a warning about a growing trend where fraudsters are increasingly using artificial intelligence (AI) to create deepfake videos that appear to show celebrities, politicians, and TV hosts endorsing investments.
These doctored clips are surfacing on platforms such as Facebook, Instagram Reels, and Telegram, where they’re promoted widely, often through paid ads and influencer partnerships, and because many of the platforms distributing these videos aren’t registered with the SEC, they are not subject to the same rules or oversight, making them particularly risky for consumers.
The SEC has urged the public to be cautious. “Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag.
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“These platforms are not registered or regulated by the SEC, yet they continue to mislead the public with false claims of AI-driven investments. They posed serious risks to investors,” the commission stated.
The SEC also pointed out that several entities, such as CBEX, Silverkuun, and TOFRO, have already been caught marketing AI-powered trading systems promising unrealistic returns.
These operations were not in compliance with regulations, and the SEC has issued warnings about them. To counteract this emerging threat, the SEC stated that it has implemented more advanced surveillance tools to detect fraudulent activity in real-time.
The regulator stated that traditional methods of detecting fraud are no longer sufficient.
Influencers and bloggers are also being warned: those who promote unlicensed investment schemes or participate in questionable celebrity endorsements may face regulatory action, possibly even prosecution.
