The North American Securities Administrators Association (NASAA) has identified crypto and social media scams as the top investor risk for 2025. In a recent statement, NASAA warned that fraudsters are increasingly using social media platforms to target unsuspecting investors. According to a survey of state and provincial regulators in the United States and Canada, nearly 32% of scams originated on platforms like Facebook and X, while 31% were linked to messaging services such as Telegram and WhatsApp.
Short-form video content on platforms like TikTok and Instagram Reels accounted for 19% of reported scams, while longer video formats on YouTube and Vimeo made up 14% of the total. NASAA highlighted that scammers are using these platforms to create professional-looking imagery and videos to make fraudulent investments appear legitimate.
The association also raised concerns about scams designed to manipulate emotions, such as high-pressure “get rich quick” pitches and romance scams. Leslie Van Buskirk, president of NASAA, advised investors to thoroughly investigate before investing and to be wary of opportunities that seem too good to be true. Amanda Senn, NASAA Enforcement Section Committee Co-Chair, recommended checking the registration status of an entity before engaging.
NASAA also expressed concerns about the use of artificial intelligence in scams, with nearly 39% of regulators expecting fraudsters to use AI-generated content to establish false credibility. Additionally, 22% anticipate a rise in deepfake scams, where criminals impersonate celebrities or trusted figures to mislead investors.
Crypto scams have caused significant damages to the industry, with reports of a 210% surge in deposits to pig butchering scams in 2024. Web3 security firm Cyvvers reported that over $3.6 billion was lost to pig butchering scams. The use of deepfake technology in scams has also been on the rise, with scammers impersonating well-known figures like Elon Musk and Tim Cook to promote fake crypto investment schemes.
Investors are urged to remain vigilant and cautious when engaging with investment opportunities, especially on social media platforms. It is essential to conduct thorough research and due diligence before making any investment decisions to protect against falling victim to fraudulent schemes.