The Growing Threat of Crypto and Social Media Scams in 2025
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 recent statement released on March 6. This alert comes after a survey conducted among state and provincial regulators across the United States and Canada.
Emerging Technologies Exploited by Fraudsters
NASAA President and Wisconsin Securities Administrator Leslie Van Buskirk highlighted that fraudsters are leveraging emerging technologies like AI and crypto to make their scams more convincing. These scams often exploit the Fear of Missing Out (FOMO) and push high-risk investments with no technological foundation. Investors are pressured to act quickly, discouraging proper research and due diligence.
“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 Platforms as Hotbeds for Scammers
NASAA’s findings reveal that scammers are refining their tactics by increasingly using social media platforms to target investors. They employ text messages, voice calls, and video content to appear more credible. The survey indicated that Facebook and X account for approximately 32% of potential scams, while Telegram and WhatsApp contribute 31%. Short-form video platforms like TikTok and Instagram Reels make up 19% of fraudulent activities, with long-form platforms such as YouTube and Vimeo representing 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, but the individuals behind these schemes often lack proper registration or licensing to deal in securities.
Additionally, there has been a rise in romance scams and “pig-butchering” schemes, targeting victims through emotional manipulation before defrauding them.
The Role of Artificial Intelligence in Financial Fraud
Artificial intelligence (AI) is emerging as a tool for financial fraud, with regulators predicting a rise in AI-driven scams in 2025. Nearly 39% of respondents expect fraudsters to use AI-generated visuals and content to enhance their credibility. Additionally, 22% foresee an increase in deepfake videos and voice impersonation to deceive investors.
Scammers are already exploiting AI in various schemes, promoting AI-powered trading bots, selling shares in fake AI ventures, and orchestrating account takeovers. Identity fraud is also on the rise, with criminals using publicly available images to impersonate individuals. Some schemes involve the creation of fake websites and apps designed to steal funds.
