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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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The North American Securities Administrators Association (NASAA) has warned retail investors, identifying crypto and social media scams as the top threats in 2025.
The annual report, compiled through a survey of state and provincial regulators across the United States and Canada, highlights the increasing sophistication of fraudulent schemes, particularly those exploiting digital platforms and artificial intelligence.
Regulators have noted a significant rise in scams targeting investors through social media networks such as Facebook, X (formerly Twitter), Telegram, and WhatsApp.
These platforms, traditionally used for social interaction and messaging, are now being leveraged by scammers to promote fraudulent investments using highly polished marketing materials.
The deceptive nature of these scams has been further amplified by the use of AI-generated content, deepfake technology, and high-pressure emotional tactics to manipulate victims into parting with their funds.
Social media has become a fertile ground for financial scams, with fraudsters increasingly using online platforms to reach unsuspecting victims.
According to NASAA’s findings, nearly 32% of scams originate from platforms like Facebook and X, while another 31% stem from messaging services like Telegram and WhatsApp.
Video-based content, both long and short-form, is crucial in spreading deceptive schemes. Platforms like YouTube and Vimeo account for 14% of reported cases, whereas TikTok and Instagram Reels contribute another 19%.
These digital avenues enable scammers to create professional-looking promotions that appear legitimate, often using sophisticated imagery and videos to lure investors.
The deceptive nature of these scams is further compounded by psychological tactics, such as inducing a fear of missing out (FOMO) or exploiting emotional vulnerabilities.
Romance and affinity scams have been particularly damaging, commonly called “pig butchering” schemes. Perpetrators initiate online relationships in these scams before coercing victims into fraudulent investments.
Once the scammer has extracted enough funds, they disappear, leaving the victim financially devastated.
AI and Deepfake Technology in Investment Fraud
A growing concern among regulators is using artificial intelligence to facilitate scams.
Nearly 39% of NASAA’s survey respondents expect AI-generated content, such as professional-looking graphics, videos, and promotional materials, to mislead investors significantly.
Furthermore, 22% of regulators predict a rise in deepfake scams, where fraudsters use AI to create convincing images, videos, and voice recordings of celebrities or trusted figures to deceive potential victims.
Deepfake scams have already infiltrated the crypto space, with criminals impersonating public figures like Elon Musk and Apple CEO Tim Cook to promote fraudulent crypto investment opportunities.
The ability of AI to mimic realistic human interactions makes these scams increasingly difficult to detect, allowing fraudsters to build credibility and manipulate victims into investing.
Notably, recent research by crypto exchange Bitget revealed a 245% increase in deepfake scams in 2024, with over $24 billion lost to these types of scams.
Additionally, Chainalysis also reported a 210% surge in deposits to pig butchering scams in 2024. A separate report from web3 security firm Cyvers found that over $3.6 billion had been lost to such scams within the past year.
NASAA continues to urge investors to remain vigilant and verify the legitimacy of investment opportunities before committing funds.
The association advises checking with state, provincial, or territorial regulators to confirm the registration status of financial entities.
Additionally, investors should be wary of high-pressure tactics, promises of guaranteed returns, and unsolicited investment offers, particularly those from social media and messaging platforms.
“If something sounds too good to be true, it probably is,” Van Buskirk cautioned. “Investigate before you invest, and remember, being pressured to act quickly is a huge red flag.”
As it stands now, crypto and artificial intelligence pose a growing threat, and regulators are working extensively to curb it and protect investors.
