NASAA Warns About Increasing Crypto and Social Media Scams

The North American Securities Administrators Association (NASAA) has raised concerns about the escalation of cryptocurrency and social media scams, warning that fraudsters are enhancing their tactics to deceive unsuspecting investors.

In a statement released on March 6, NASAA identified cryptocurrency and social media scams as a significant threat to retail investors in 2025, based on a survey of state and provincial regulators across the United States and Canada.

Scammers Targeting Social Media

The survey revealed that scammers are increasingly targeting potential investors through social media platforms. Nearly 32% of identified scams originated on platforms like Facebook and X, while another 31% were associated with messaging apps such as Telegram and WhatsApp.

Short-form video content has emerged as a key tool for scammers, with NASAA reporting that platforms like TikTok and Instagram Reels accounted for 19% of reported scams. In contrast, longer video formats such as YouTube and Vimeo made up 14% of the total scams.

NASAA cautioned that these criminals are leveraging “slick professional imagery and videos” to make fraudulent investment opportunities appear legitimate.

Emotional Manipulation in Scams

NASAA also flagged a rise in scams that exploit emotional vulnerabilities, including high-pressure “get rich quick” schemes and romance fraud, often referred to as pig butchering scams.

> “Perpetrators of relationship and romance scams contact victims – oftentimes seemingly at random – and develop relationships before soliciting greater and greater investments. After draining the victim’s bank accounts, the promoter simply disappears with the money,” said the NASAA.

Leslie Van Buskirk, NASAA president and Wisconsin securities administrator, reminded investors to “investigate before you invest” and to be cautious of opportunities that seem “too good to be true.”

Meanwhile, Amanda Senn, co-chair of the NASAA Enforcement Section Committee, advised the public to check the registration status of any entity before engaging in investment activities.

Concerns Over AI in Scams

The association expressed concerns regarding the increasing use of artificial intelligence in scams. The survey found that nearly 39% of regulators expect fraudsters to utilize AI-generated content, including professional-looking graphics and videos, to create a facade of credibility.

Moreover, 22% anticipate a rise in deepfake scams, where criminals impersonate trusted figures or celebrities to mislead investors. In recent years, deepfake scammers have posed as well-known personalities like Elon Musk and Apple CEO Tim Cook to promote fraudulent crypto investments.

Research conducted by crypto exchange Bitget in June last year found a staggering 245% increase in deepfake scams in 2024. To date, crypto scams have resulted in multi-billion dollar losses to the industry. Recently, blockchain forensic firm Chainalysis reported a 210% increase in deposits made into pig butchering scams in 2024.

Additionally, a report from web3 security firm Cyvvers indicated that over $3.6 billion was lost due to pig butchering scams in recent times.

Read more: 87M Crypto Scam Uncovered in Norway, Four Individuals Indicted