AI and crypto scams predicted to escalate in 2025, warns North American securities watchdog

The North American Securities Administrators Association (NASAA) has identified crypto and social media scams as significant risks to retail investors in 2025, according to a March 6 statement.

This alert follows a survey conducted among state and provincial regulators across the United States and Canada.

NASAA President and Wisconsin Securities Administrator Leslie Van Buskirk pointed out that fraudsters use emerging technologies like AI and crypto to make their scams more convincing.

According to Buskirk, these scams exploit FOMO, pushing high-risk investments with no technological foundation. They also pressure investors to act quickly, discouraging proper research and due diligence.

Considering this, Buskirk stated:

“If something sounds too good to be true, it probably is. Investigate before you invest and remember, being pressured to act is a huge red flag.”

Social media scams

NASAA’s findings highlight that scammers are refining their tactics, increasingly using social media platforms to target investors. Fraudsters now employ text messages, voice calls, and video content to appear more credible.

According to the survey, social media platforms Facebook and X account for approximately 32% of potential scams, while Telegram and WhatsApp contribute 31%.

Short-form video platforms such as TikTok and Instagram Reels make up 19% of fraudulent activities, while long-form platforms like YouTube and Vimeo represent 14%.

The association emphasized that digital platforms provide fraudsters with an efficient way to reach large audiences.

Many scams feature high-quality visuals and professional videos promoting lucrative financial opportunities. However, NASAA warned that the individuals behind these schemes often lack proper registration or licensing to deal in securities.

In addition, the organization noted a rise in romance scams, which aligns with growing concerns over “pig-butchering” schemes. These scams frequently target victims through emotional manipulation before defrauding them.

AI threats

Artificial intelligence (AI) is also emerging as a tool for financial fraud.

Regulators predict a rise in AI-driven scams in 2025, with 38.9% of respondents expecting fraudsters to use AI-generated visuals and content to enhance their credibility. Additionally, 22.2% foresee increased use of deepfake videos and voice impersonation to deceive investors.

Scammers are already exploiting AI in various schemes. They promote AI-powered trading bots, sell shares in fake AI ventures, and orchestrate account takeovers.

Moreover, identity fraud is also rising, with criminals using publicly available images to impersonate individuals.

Additionally, some schemes involve the creation of fake websites and apps designed to steal funds.

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