Social Media and Crypto Scams: Emerging Threats for Retail Investors in 2025

Introduction

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 March 6 statement.

This alert follows a survey conducted among state and provincial regulators across the United States and Canada.

The Rise of Social Media Scams

Fraudsters are refining their tactics, increasingly using social media platforms to target investors. Scammers now employ text messages, voice calls, and video content to appear more credible.

Social media platforms Facebook and X account for approximately 32% of potential scams, while Telegram and WhatsApp contribute 31%.

Short-form video platforms such as TikTok and Instagram Reels make up 19% of fraudulent activities, while long-form platforms like YouTube and Vimeo represent 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. However, NASAA warned that the individuals behind these schemes often lack proper registration or licensing to deal in securities.

In addition, the organization noted a rise in romance scams, which aligns with growing concerns over “pig-butchering” schemes. These scams frequently target victims through emotional manipulation before defrauding them.

The Rise of AI-Driven Scams

Artificial intelligence (AI) is also emerging as a tool for financial fraud.

Regulators predict a rise in AI-driven scams in 2025, with 38.9% of respondents expecting fraudsters to use AI-generated visuals and content to enhance their credibility.

Additionally, 22.2% foresee increased use of deepfake videos and voice impersonation to deceive investors.

Scammers are already exploiting AI in various schemes. They promote AI-powered trading bots, sell shares in fake AI ventures, and orchestrate account takeovers.

Moreover, identity fraud is also rising, with criminals using publicly available images to impersonate individuals.

Furthermore, some schemes involve the creation of fake websites and apps designed to steal funds.

Conclusion

In conclusion, NASAA’s findings highlight the urgent need for investors to be vigilant and cautious when navigating the complex world of social media and crypto. As fraudsters continue to refine their tactics, it is crucial for investors to be aware of the potential risks and take necessary steps to protect themselves.

FAQs

What are the most common social media platforms used by scammers?

According to NASAA, the most common social media platforms used by scammers are Facebook and X, accounting for approximately 32% of potential scams, followed by Telegram and WhatsApp, which contribute 31%.

What is the role of AI in financial fraud?

AI is emerging as a tool for financial fraud, with 38.9% of respondents expecting fraudsters to use AI-generated visuals and content to enhance their credibility, and 22.2% foreseeing increased use of deepfake videos and voice impersonation to deceive investors.

What are the most common tactics used by scammers?

Scammers are using a range of tactics, including emotional manipulation, high-pressure sales, and the creation of fake websites and apps designed to steal funds. They are also promoting AI-powered trading bots, selling shares in fake AI ventures, and orchestrating account takeovers.

How can investors protect themselves from these scams?

Investors can protect themselves by being cautious and doing their due diligence. They should investigate any investment opportunities thoroughly, check the credentials of the individuals or companies involved, and be wary of any offers that seem too good to be true. Additionally, they should keep their personal and financial information secure and be cautious of any unsolicited investment offers.