The North American Securities Managers Association has issued warnings about crypto and social media fraud, warning that fraudsters are increasing tactics to seduce unsuspecting investors.
In a statement on March 6, NASAA flagged cryptocurrency and social media fraud as the biggest threat to retail investors in 2025, based on investigations from states and state regulators in the US and Canada.
Research shows that scammers are increasingly targeting investors across social media platforms. Nearly 32% of scams occurred on platforms like Facebook and X, and an additional 31% were linked to messaging services like Telegram and WhatsApp.
Short form video content has also become a major tool for scammers. NASAA notes that platforms like Tiktok and Instagram reels account for 19% of reported scams. Meanwhile, longer video formats such as YouTube and Vimeo account for 14% of the total.
NASAA warned that scammers are using these platforms to create “smooth professional images and videos” that make fraudulent investments legal.
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The association also flagged a surge in frauds designed to “play with emotion,” from high-pressure “rich quick” pitches to romance and affinity scams.
“The perpetrators of relationship and romance fraud often form relationships at random, seemingly, and before soliciting larger investments. After expelling the victim’s bank account, the promoter simply disappears for money” – North American Securities Managers Association
Leslie Van Baskirk, president of NASAA and Wisconsin Securities Manager, reminds investors to “find research before investing” and beware of opportunities that seem “not true.”
Meanwhile, Amanda Sen, co-chair of the NASAA Executive Section Committee, advised the public to investigate the status of the entity’s registration before being involved.
Use in AI scams is expected to increase
The association also expressed concerns about the use of artificial intelligence in these scams. The survey found that nearly 39% of regulators expect fraudsters to use AI-generated content, including professional graphics and videos, to establish false credibility.
Another 22% expect an increase in Deepfark scams in which criminals impersonate celebrities and trustworthy people to mislead investors.
For the past few years, Deepfake scammers have been pretending to be several known faces, like Elon Musk and Apple CEO Tim Cook, to promote fake crypto investment schemes.
A study by Crypto Exchange Bitget conducted last June showed that Deepfake Scams had a 245% increase in 2024.
Crypto fraud has so far caused billions of dollars in damages to the crypto industry. Last month, Blockchain Forensics’ Corporate Chain Dissolution highlighted a 210% surge in sediment to pig slaughter fraud in 2024.
More than $3.6 billion has been lost to pig slaughter fraud, according to another report from Web3 security company Cyvvers.
read more: A $87 million crypto fraud was discovered in Norway and four people were charged
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