tl;dr
The North American Securities Administrators Association (NASAA) has warned of an escalation in AI and crypto scams by 2025. The association highlighted the use of emerging technologies like AI and crypto to make scams more convincing, exploiting FOMO and pressuring investors to act quickly. NASAA a...
The North American Securities Administrators Association (NASAA) has issued a warning about the escalating AI and crypto scams targeting investors in 2025. The association highlighted the use of emerging technologies like AI and crypto to make scams more convincing, exploiting FOMO and pressuring investors to act quickly. The use of social media platforms by fraudsters to target investors has also been emphasized, with Facebook and X accounting for 32% of potential scams.
Regulators predict a rise in AI-driven scams, with an expected increase in the use of AI-generated visuals, deepfake videos, and voice impersonation to deceive investors. Scammers are utilizing AI in various schemes, including promoting AI-powered trading bots and identity fraud through publicly available images.
NASAA President Leslie Van Buskirk highlighted that fraudsters use emerging technologies like AI and crypto to make their scams more convincing, exploiting FOMO and pressuring investors to act quickly. Buskirk also emphasized the importance of investigating before investing, stating that being pressured to act is a huge red flag.
NASAA's findings reveal that scammers are increasingly using social media platforms to target investors, employing text messages, voice calls, and video content to appear more credible. Facebook, X, Telegram, and WhatsApp are among the platforms involved in these activities.
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, often featuring high-quality visuals and professional videos promoting fraudulent financial opportunities.
AI is also emerging as a tool for financial fraud, with regulators predicting a rise in AI-driven scams in 2025. Scammers are expected to use AI-generated visuals, deepfake videos, and voice impersonation to deceive investors. Additionally, identity fraud through the use of publicly available images and the creation of fake websites and apps designed to steal funds are on the rise.