The North American Securities Administrators Association
(NASAA) released its annual list of top threats to retail investors today. This
year, the threats include financial scams related to digital assets and
cryptocurrency, as well as manipulative marketing tactics using social media
apps.
Top Scams Target Investors Across Platforms
NASAA compiled the list through a survey of securities
regulators across the United States and Canada. The survey results revealed
that regulators are most focused on scams targeting investors through common
platforms.
These include social media sites like Facebook and X, which
account for 31.7 percent, text- and voice-based platforms such as Telegram and
WhatsApp, which account for 31.3 percent, and video-sharing platforms like
YouTube, Vimeo, TikTok, and Instagram Reels, which account for 33.1 percent.
AI-Driven Scams Rise in 2025
Regulators also expressed concern over the growing use of
artificial intelligence (AI ) to deceive investors. They expect a rise in 2025
of scams involving AI-generated content, such as professional graphics and
videos that give fraudulent schemes an air of legitimacy, with 38.9 percent of
regulators anticipating this development.
Some criminals are also using AI to create deepfake images,
videos, and voices of well-known figures to trick victims, with 22.2 percent of
regulators noting this trend.
“AI investing is the latest technology to make waves in
the investing landscape and fraudsters are pitching new investments that often
have nothing to do with the latest tech developments and instead play on fear
of missing out or get rich quick schemes along with other heightened emotions,”
said Leslie Van Buskirk, NASAA President and Wisconsin Securities
Administrator.
The report shows that bad actors are already exploiting AI
in various ways. They are selling AI-powered trading bots, offering fake equity
in companies, or claiming to develop AI models. Additionally, they are involved
in account takeover scams and identity fraud, using stolen photos and spoofing
websites and apps to mislead victims.
Cyber crime Unit Hyderabad city as a part Cyber Jaagrookta Diwas conducted cyber awareness program about Parcel Scam&digital arrest, trading, APK files, Crypto currency, part time job& Investment, OTP, customer care, other social media trolling at State Bank of India Patny centre pic.twitter.com/AaS67Suloj
— Cyber Crimes PS Hyd City Police (@CyberCrimeshyd) March 5, 2025
Emotional Manipulation Drives Rising Investment Scams
The appeal of these scams lies in the ability to reach large
numbers of potential victims quickly. Online platforms make it easy for
fraudsters to distribute professionally crafted content that promotes
high-return financial products. Despite the polished nature of these schemes,
many promoters are not licensed by state regulators to offer securities.
Many of these scams involve emotional manipulation. For
example, perpetrators of relationship or romance scams often form relationships
with victims before convincing them to invest larger sums of money. Once the
funds are drained, the scammer disappears. Regulators advise investors to check
with their state or provincial regulator before engaging in any investment
opportunities.
The North American Securities Administrators Association
(NASAA) released its annual list of top threats to retail investors today. This
year, the threats include financial scams related to digital assets and
cryptocurrency, as well as manipulative marketing tactics using social media
apps.
Top Scams Target Investors Across Platforms
NASAA compiled the list through a survey of securities
regulators across the United States and Canada. The survey results revealed
that regulators are most focused on scams targeting investors through common
platforms.
These include social media sites like Facebook and X, which
account for 31.7 percent, text- and voice-based platforms such as Telegram and
WhatsApp, which account for 31.3 percent, and video-sharing platforms like
YouTube, Vimeo, TikTok, and Instagram Reels, which account for 33.1 percent.
AI-Driven Scams Rise in 2025
Regulators also expressed concern over the growing use of
artificial intelligence (AI ) to deceive investors. They expect a rise in 2025
of scams involving AI-generated content, such as professional graphics and
videos that give fraudulent schemes an air of legitimacy, with 38.9 percent of
regulators anticipating this development.
Some criminals are also using AI to create deepfake images,
videos, and voices of well-known figures to trick victims, with 22.2 percent of
regulators noting this trend.
“AI investing is the latest technology to make waves in
the investing landscape and fraudsters are pitching new investments that often
have nothing to do with the latest tech developments and instead play on fear
of missing out or get rich quick schemes along with other heightened emotions,”
said Leslie Van Buskirk, NASAA President and Wisconsin Securities
Administrator.
The report shows that bad actors are already exploiting AI
in various ways. They are selling AI-powered trading bots, offering fake equity
in companies, or claiming to develop AI models. Additionally, they are involved
in account takeover scams and identity fraud, using stolen photos and spoofing
websites and apps to mislead victims.
Cyber crime Unit Hyderabad city as a part Cyber Jaagrookta Diwas conducted cyber awareness program about Parcel Scam&digital arrest, trading, APK files, Crypto currency, part time job& Investment, OTP, customer care, other social media trolling at State Bank of India Patny centre pic.twitter.com/AaS67Suloj
— Cyber Crimes PS Hyd City Police (@CyberCrimeshyd) March 5, 2025
Emotional Manipulation Drives Rising Investment Scams
The appeal of these scams lies in the ability to reach large
numbers of potential victims quickly. Online platforms make it easy for
fraudsters to distribute professionally crafted content that promotes
high-return financial products. Despite the polished nature of these schemes,
many promoters are not licensed by state regulators to offer securities.
Many of these scams involve emotional manipulation. For
example, perpetrators of relationship or romance scams often form relationships
with victims before convincing them to invest larger sums of money. Once the
funds are drained, the scammer disappears. Regulators advise investors to check
with their state or provincial regulator before engaging in any investment
opportunities.
This post is originally published on FINANCEMAGNATES.
