The North American Securities Administrators Association has sounded the alarm on crypto and social media scams, warning that fraudsters are ramping up their tactics to lure in unsuspecting investors.
In a March 6 statement, NASAA flagged cryptocurrency and social media scams as a top threat to retail investors in 2025, based on a survey of state and provincial regulators in the United States and Canada.
According to the survey, scammers are increasingly targeting investors across social media platforms. Nearly 32% of likely scams originated on platforms like Facebook and X, while another 31% were linked to messaging services such as Telegram and WhatsApp.
Short-form video content has also become a major tool for fraudsters, with NASAA noting that platforms like TikTok and Instagram Reels accounted for 19% of reported scams. Meanwhile, longer video formats, such as YouTube and Vimeo, made up 14% of the total.
NASAA warned that scammers are using these platforms to create “slick professional imagery and videos” that make fraudulent investments appear legitimate.
The association also flagged a surge in scams designed to “play on emotions”, from high-pressure “get rich quick” pitches to romance and affinity fraud, which are commonly referred to as pig butchering scams.
“Perpetrators of relationship and romance scams contact victims – oftentimes seemingly at random – and develop relationships before soliciting greater and greater investments. After draining the victim’s bank accounts, the promoter simply disappears with the money,” – The North American Securities Administrators Association
Leslie Van Buskirk, president of the NASAA and Wisconsin securities administrator, reminded investors to “investigate before you invest” and to watch out for opportunities that seem “too good to be true.”
Meanwhile, NASAA Enforcement Section Committee Co-Chair Amanda Senn advised the public to look into the registration status of an entity before engaging.
AI use in scams expected to rise
The association also expressed concern 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-looking graphics and videos, to establish false credibility.
Another 22% anticipate a rise in deepfake scams, where criminals impersonate celebrities or trusted figures to mislead investors.
Over the past years, deepfake scammers have masqueraded as several known faces like Elon Musk and Apple CEO Tim Cook to promote fake crypto investment schemes.
Research by crypto exchange Bitget conducted last year in June found that deepfake scams had surged 245% in 2024.
Crypto scams have caused multi-billion dollar damages to the crypto industry to date. Last month, blockchain forensic firm Chainalysis highlighted a 210% surge in deposits to pig butchering scams in 2024.
According to a separate report from web3 security firm Cyvvers, over $3.6 billion was lost to pig butchering scams.
