Investment scams became the most expensive type of fraud tracked by the Federal Trade Commission in 2025, with reported losses exceeding $8 billion, according to New York officials. The state Division of Consumer Protection issued an artificial intelligence investment scam warning on Aug. 26 after 144,041 consumers reported losses totaling more than $8 billion, a 38% increase from 2024. The median reported loss rose to $10,560.
Investment scams can start on social media, dating apps, through text messages and emails, in online advertisements, or during seemingly friendly conversations. An FTC consumer alert issued in April placed the 2025 total at more than $7.9 billion, with the median individual loss above $10,000. The agency said scammers promote fake opportunities involving cryptocurrency, stocks, and foreign exchange, often using fraudulent investment coaching offers.
New York Secretary of State Walter T. Mosley cautioned:
“New Yorkers need to be vigilant against scammers, who may be able to create increasingly sophisticated and realistic messaging using AI technology or other means to steal your hard-earned money. If it seems too good to be true, it probably is.”
Reported investment scam losses exceeded $8 billion in 2025, up 38% from 2024, while the median reported loss reached $10,560. Chart generated by Bitcoin.com News using New York Department of State figures citing Federal Trade Commission data.
AI Deepfakes Promote Fake Crypto Investments
Artificial intelligence enables fraudsters to clone voices, create fabricated videos, impersonate financial figures, and produce polished social media advertisements. In an April warning, New York Attorney General Letitia James described scams involving deepfake celebrity endorsements, fraudulent cryptocurrencies, pump-and-dump schemes, and fake trading platforms promoted on Facebook, Instagram, and Whatsapp.
Victims may be directed to professional-looking applications showing fabricated account balances, investment returns, and trading activity. Some operators allow small initial withdrawals to build credibility before urging victims to deposit larger amounts.
Similar tactics have emerged internationally. Australian regulators recently dismantled 3,106 fraudulent cryptocurrency investment platforms during the 2026 financial year as AI-generated endorsements became increasingly difficult to distinguish from legitimate promotions.
Fake Trading Platforms Build Trust Before Charging Fees
A separate Australian case showed how organized groups can create an entire fake online ecosystem around a nonexistent crypto investment. Investigators found counterfeit trading platforms, fabricated news articles, and chatbots posing as customer-support staff. The operation continued until a woman lost nearly $74,690.
Scammers may later demand additional fees before releasing supposed investment funds. New York officials warned consumers never to pay those fees.
Consumers should confirm the identity of any investment promoter, verify the company and opportunity, and determine where their money will go before transferring funds. Warning signs of a cryptocurrency investment scam include guaranteed high returns, unsolicited offers, high-pressure sales tactics, and projects without clear documentation.
Anyone who suspects fraud should stop sending money immediately and report the incident to the FTC, the FBI’s Internet Crime Complaint Center, the SEC, or the New York Attorney General.