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NASAA Says Online Fraud Tops 2025 List of Threats to Retail Investors

"AI investing is the latest technology to make waves in the investing landscape and fraudsters are pitching new investments that often have nothing to do with the latest tech developments and instead play on fear of missing out or get rich quick schemes along with other heightened emotions."
Leslie Van Buskirk, NASAA President and Wisconsin Securities Administrator
"AI investing is the latest technology to make waves in the investing landscape and fraudsters are pitching new investments that often have nothing to do with the latest tech developments and instead play on fear of missing out or get rich quick schemes along with other heightened emotions."
Leslie Van Buskirk, NASAA President and Wisconsin Securities Administrator

In its annual survey, the North American Securities Administrators Association ("NASAA") identified crypto scams and social media fraud as the most pressing threats to retail investors. 

NASAA said that (i) financial scams tied to digital assets and cryptocurrency, (ii) fraudulent promotions on social media apps and (iii) marketing tactics designed to play on emotions, topped the list of concerns for the state and provincial securities regulators.

NASAA said that scammers are targeting investors through Facebook, text- and voice-based communication platforms, such as Telegram and WhatsApp, and long-form video platforms such as YouTube and Vimeo, as well as short-form video like TikTok and Instagram Reels.  

NASAA warned that criminals were using AI to perpetrate fraudulent schemes, including identity theft using existing pictures of people online and website and app spoofing. The Association said that "bad actors are creating and selling AI-powered trading bots, selling equity in companies, purportedly developing an AI model, or perpetrating account takeover scams."  

Primary Sources

  1. NASAA Release: NASAA Highlights Top Investor Threats for 2025

Tags

Regulated Activities
Criminal Activity Suitability and Consumer Protection
Regulated Products
Digital Assets
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
Regulators' Associations
Sub-Author
NASAA