- New York officials warn that AI-generated content and fake crypto projects are making investment fraud more convincing.
- Reported investment scam losses exceeded $8 billion in 2025, a 38% increase from the prior year, per FTC data.
- Investment scams became the costliest fraud category tracked by the FTC in 2025.
- State regulators highlight deepfake videos and AI chatbots as new tools used by scammers to impersonate trusted figures.
- Consumers are urged to verify investment opportunities through official channels and avoid unsolicited crypto offers.
New York Regulators Sound Alarm on AI-Enhanced Fraud
New York state officials are intensifying warnings to consumers and investors about the growing threat of investment scams that leverage artificial intelligence and counterfeit cryptocurrency ventures. The alert comes as newly compiled data from the Federal Trade Commission (FTC) reveals that reported losses from investment fraud surpassed $8 billion in 2025, marking a sharp 38% rise from the previous year. This surge has elevated investment scams to the top spot among all fraud categories tracked by the federal agency, surpassing other long-standing threats like imposter scams and online shopping fraud.
The warning from New York authorities specifically points to the role of generative AI in making fraudulent schemes appear more legitimate. According to the state’s Department of Financial Services, scammers are increasingly using deepfake technology to create realistic video and audio messages that impersonate financial advisors, government officials, or even celebrity endorsers. These AI-generated materials are often paired with fabricated news articles and fake trading platforms, creating a convincing but entirely fictitious investment ecosystem that can be difficult for even savvy consumers to detect.
The Rise of Fake Crypto Projects and AI Chatbots
Beyond deepfakes, regulators have observed a troubling uptick in fraudulent cryptocurrency projects that use AI chatbots to interact with potential victims. These bots are programmed to answer questions, provide fake account statements, and simulate customer support, giving the illusion of a functioning and legitimate business. In many cases, the scammers will direct victims to websites that mimic legitimate exchanges or wallet services, only to steal deposited funds once the victim attempts to withdraw their supposed profits.
New York officials emphasized that the $8 billion figure likely understates the true scale of the problem, as many victims never report the crime due to embarrassment or a lack of awareness. The FTC data also shows that losses are disproportionately concentrated among younger adults, who are more likely to engage with online investment opportunities and social media promotions. However, older investors who fall victim tend to lose significantly larger sums, making them a prime target for high-pressure tactics and fabricated celebrity endorsements.
Advice for Consumers and Investors
In response to the escalating threat, New York regulators are advising consumers to adopt a skeptical approach to any unsolicited investment pitch, particularly those involving cryptocurrency or AI-driven trading tools. Key recommendations include verifying the registration of any investment firm with state or federal authorities, independently researching any project through official channels rather than links provided in messages, and being highly cautious of any request to pay in cryptocurrency or through wire transfers. Officials also stress that legitimate financial institutions will never guarantee returns or pressure clients into immediate decisions.
The warning from New York is part of a broader national effort to combat the intersection of emerging technology and financial crime. Federal agencies have been collaborating with state regulators to share intelligence on new scam tactics and to pursue enforcement actions against the operators of fraudulent platforms. While the legal landscape for cryptocurrency remains in flux, regulators are clear that the use of AI to deceive investors will be treated as an aggravating factor in any prosecution. As the technology behind deepfakes and chatbots continues to improve, officials caution that the sophistication of these scams will only increase, making public awareness and vigilance more critical than ever.
For now, the message from New York is straightforward: treat any investment opportunity that relies on AI-generated endorsements or promises of outsized returns with extreme caution. The combination of fake crypto projects and artificial intelligence has created a new frontier in fraud, and regulators are racing to keep pace with the evolving tactics of bad actors. Consumers who suspect they have been targeted are encouraged to report the incident to the FTC and their state attorney general’s office, as early reporting can aid in investigations and potentially help recover lost funds.
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