What Is the AI Fake Ads and Endorsements Scam?

Scammers use artificial intelligence (AI) to create fake online ads that look and sound real. They are designed to trick you into spending money or sharing personal information. As the technology improves, these scams are getting harder to spot. According to recent warnings from law enforcement, fraud losses tied to these AI-powered scams could reach $40 billion by 2027.

How the Scam Works

Fraudsters use AI to generate realistic-looking ads and videos, often shared through social media or shady websites. These ads may claim to offer miracle products, guaranteed investment returns, or exclusive deals. The scammers may use fabricated quotes, computer-generated videos of public figures, or fake “news” clips to make the offer seem trustworthy. Once you click or engage, you may be asked to pay upfront, provide credit card information, or share personal details. The product often never arrives, or the investment is fake.

Example of the Scam

Marcus sees a video ad on social media where a well-known actor appears to promote a “breakthrough” supplement. The actor’s voice and expressions look real; the video even includes a fake interview clip. Trusting the endorsement, Marcus places an order. Weeks later, the product still hasn’t arrived, and the actor’s team confirms he never endorsed it. The ad was all AI-generated.

Tips to Protect Yourself From the Fake Ads and Endorsements Scam

• Be cautious of ads with big promises. Offers that sound too good to be true often are.
• Verify endorsements. Check official websites or trusted news sources to confirm whether a public figure is genuinely involved.
• Research the product or company. Look for reviews, complaints, or warnings from consumer protection agencies.
• Be skeptical of emotional appeals. Scam ads often use urgency or fear to push you into quick decisions.
• Avoid clicking unfamiliar links in ads. Instead, type the product or company name into your browser for more information.

If You’ve Been Scammed

If you’ve been scammed by a fake AI ad, follow these essential tips:

• Contact us and any other financial institutions you work with. If your account information has been compromised, or if you have mistakenly given money to a scam, let us know.
• Report the scam to the FTC. File a report with the Federal Trade Commission at ReportFraud.FTC.gov. Also, inform your local law enforcement.
• Report the scam to the state attorney general. You can find information at NAAG.org.
• Watch for follow-up scams. Fraudsters may try to target you again after an initial scam.