New York Warns of Fake Crypto and AI Scams as Investment Losses Top $8 Billion
New York officials have issued a public warning that artificial intelligence and fake cryptocurrency projects are making investment scams more convincing and harder to detect.
According to the state’s Division of Consumer Protection, Federal Trade Commission (FTC) data shows that 144,041 consumers reported losing more than $8 billion to investment scams in 2025. This marks a 38% increase from 2024 and makes investment fraud the costliest category of scams tracked by the FTC. The median reported loss was $10,560.
The warning, released on August 26, 2026, highlights how scammers are using AI tools to create realistic deepfake videos, cloned voices, fabricated celebrity endorsements, and professional-looking advertisements. These tactics appear across social media, dating apps, text messages, emails, and online ads.
Fake cryptocurrency projects are frequently used as the investment vehicle. Scammers often set up platforms that mimic legitimate exchanges, complete with real-time price charts, account dashboards, and fabricated balances. In some cases, victims are allowed to make small withdrawals early on to build trust before being pressured to deposit larger sums or pay unexpected “fees.”
Secretary of State Walter T. Mosley stated:
“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.”
Common red flags flagged by New York authorities include:
- Guaranteed or unusually high returns
- Pressure to invest or act immediately
- Unsolicited investment advice, especially via social media or private messages
- Requests to move conversations off public platforms
- Demands for payment in cryptocurrency or wire transfers
- Claims involving insider information or secret methods
Officials advise consumers to independently verify the identity of anyone promoting an investment, confirm whether a company or platform is properly registered, and carefully check where funds are being sent. Reputable financial professionals generally do not give specific investment advice through random social media posts or unsolicited messages.
The FTC has previously noted that cryptocurrency is among the assets frequently pitched in these schemes, alongside stocks and forex. Separate FBI data for 2025 showed cryptocurrency-related complaints alone accounted for more than $11 billion in reported losses across all cyber-enabled fraud categories.
New York’s alert underscores a clear trend: as AI tools become more accessible, investment scams are growing both in scale and sophistication.
