Investment Fraud Concerns in New York
New York state officials have raised alarms regarding the growing sophistication of investment fraud, particularly scams involving AI-generated content and fraudulent cryptocurrency initiatives. Authorities disclosed that in 2025, losses from investment scams reached a staggering $8 billion, reflecting a notable 38% increase from the preceding year. This surge has made investment fraud the most expensive category of deception reported to the Federal Trade Commission (FTC) for that year.
Victim Statistics and Scam Tactics
As of August 26, officials from the Division of Consumer Protection noted that over 144,041 consumers fell victim to these scams, with a median reported loss of approximately $10,560 each. Unscrupulous operators employ a variety of platforms—ranging from social media, dating applications, text messages, and emails to online ads—to initiate contact and lure unsuspecting victims into their schemes.
The FTC’s own findings echoed these statistics, citing more than $7.9 billion in investment fraud losses in 2025, with the individual median losses climbing above $10,000. Investment offers often included fake coaching services highlighting cryptocurrency, forex, and stocks as enticing options for potential investors.
Secretary of State Walter T. Mosley stressed the importance of caution, stating, “New Yorkers must remain alert to scammers who utilize advanced technology, including AI, to craft convincing messages that could potentially rob them of their savings. If something appears too good to be true, it likely is.”
The Role of Artificial Intelligence in Scams
The capabilities of artificial intelligence are alarming, enabling fraudsters to replicate voices, generate convincing video content, impersonate public figures, and create polished advertisements on social media. An April advisory from New York’s Attorney General Letitia James highlighted various scams using deepfake endorsements, fraudulent cryptocurrencies, and deceptive trading platforms widely promoted across social networks such as Facebook, Instagram, and WhatsApp.
Victims often encounter well-designed applications that display misleading financial information, including fictional balances and trading activities. To build credibility, some scams allow minor withdrawals before pressuring victims to invest larger sums. Similar strategies have been observed in other countries; for instance, regulators in Australia recently dismantled over 3,100 fraudulent cryptocurrency schemes in the 2026 financial year, as the proliferation of AI-generated false endorsements made such scams more challenging to detect.
Case Studies and Consumer Protection
One particular Australian case illustrated how organized criminals fabricate an entire online ecosystem around a non-existent cryptocurrency, complete with fake trading platforms, counterfeit news articles, and chatbots impersonating customer service representatives. One woman was defrauded nearly $74,690 before she realized the truth. Victims are often coerced into paying extra fees to access their own funds, a tactic New York’s consumer alert strongly advises against.
Advice for Consumers
To protect themselves, consumers are urged to thoroughly verify the identity of any investment promoter, confirm the legitimacy of the company, and track where their funds are being sent prior to any transactions. Warning signs of cryptocurrency fraud include:
- Promises of guaranteed returns
- Unsolicited investment solicitations
- Aggressive sales tactics
- Projects without clear operational documentation
Authorities encourage anyone who suspects they might be the target of a scam to cease any further payments immediately and to report their experiences to the FTC, the FBI’s Internet Crime Complaint Center, the SEC, or the New York Attorney General’s office.
