Investment scam losses surpassed $8 billion in 2025, marking a significant rise in fraud activity. New York's Division of Consumer Protection reported that 144,041 consumers lost more than $8 billion, representing a 38% increase from 2024, with a median individual loss of $10,560.
Investment scams have become the costliest fraud category tracked by the Federal Trade Commission. Scammers initiate contact through social media, dating apps, text messages, emails, online advertisements, and seemingly friendly conversations before directing targets toward fraudulent investment opportunities.
AI Technology Enhances Fraud Sophistication
Artificial intelligence has enabled fraudsters to clone voices, fabricate videos, impersonate financial figures, and produce polished social media advertisements. An April warning from New York Attorney General Letitia James detailed schemes involving deepfake celebrity endorsements, fraudulent cryptocurrencies, pump-and-dump operations, and fake trading platforms promoted across Facebook, Instagram, and WhatsApp.
Secretary of State Walter T. Mosley cautioned that "New Yorkers need to be vigilant against scammers, who may be able to create increasingly sophisticated and realistic messaging using AI technology or other means to steal your hard-earned money."
Tactics Used to Build False Credibility
Victims often encounter professional-looking applications displaying fabricated balances, returns, and trading activity. Some operators permit small initial withdrawals to establish credibility before pressuring targets to deposit larger amounts. In other cases, fraudsters construct entire fake internet ecosystems around nonexistent cryptocurrencies, including counterfeit trading platforms, fabricated news articles, and chatbots posing as support staff.
Once targets attempt to withdraw funds, operators may demand additional fees before releasing money. New York's alert warns consumers never to pay such requests.
Warning Signs and Protective Steps
Common crypto scam indicators include guaranteed high returns, unsolicited investment offers, high-pressure sales tactics, and projects lacking clear documentation. New York officials advised consumers to confirm the identity of any promoter, verify the company and investment details, and establish where their money will go before transferring funds.
Consumers who suspect fraud should stop sending money immediately and report the activity to the Federal Trade Commission, the FBI's Internet Crime Complaint Center, the SEC, or the New York Attorney General.
