Consumers Reported Losing Over $8 Billion to Investment-Related Scams in 2025, a 38% Increase from 2024
Scammers Are Looking for Ways to Capitalize on Those Seeking Financial Security
Scams Are Seemingly Attractive Income Opportunities and Quick False Wealth Schemes
Secretary Mosley: “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
The New York Department of State’s Division of Consumer Protection urges New Yorkers to remain vigilant against increasingly sophisticated investment scams driven by artificial intelligence (AI). According to the Federal Trade Commission (FTC), 144,041 consumers reported losing over $8 billion to investment scams in 2025, a 38% increase from 2024. Consumers reported a median loss of $10,560 in 2025. This makes investment scams the costliest category of fraud tracked by the FTC for the year. Investment scams may begin through social media, text messages, dating apps, online advertisements, email or even a seemingly friendly conversation. Understanding how these scams work can help consumers recognize warning signs before they send money.
“New Yorkers are always looking for ways to increase their financial standings and investing in new financial products may help to maximize short or long term dividends,” Secretary of State Walter T. Mosley. “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.”
"As scams become more sophisticated, New Yorkers must stay vigilant, said Department of Financial Services Acting Superintendent Kaitlin Asrow. "DFS works every day to combat fraud and ensure access to quality and affordable financial services.”
How Investment Scams Work
Scammers capitalize on those seeking financial security by fabricating attractive income opportunities and quick wealth schemes. They use a variety of strategies to convince victims: from exploiting human connection to build trust, to developing highly sophisticated AI schemes using fake voices, faces, social media celebrity endorsements and phishing messages.
To convince victims the investment is real, scammers may use fake but professional-looking web applications or platforms that display phony account balances, investment returns or trading activity. Fake investment dashboards make it look like the victim’s money is growing, and in some cases, victims may be allowed to withdraw a portion of their money to deepen the trust before being encouraged to reinvest much larger amounts.
Common Types of Investment Scams
Relationship Investment Scams: These scams often take a longer time to develop and begin with an unexpected text message, social media contact, dating-app match or online friendship. The relationship may be romantic, friendly or professional, and rather than immediately asking for money, the scammer will build trust over time. Once trust is built, scammers may groom the victim by talking about their own investment success. They may share visuals of fake platforms showing huge financial growth to convince the victim that making money is easy and that they are missing out on large returns.
The scammers may suggest certain investments, promise insider information, or recommend a “guaranteed” investment opportunity.
Social Media and Celebrity or Financial Experts Impersonation: Scammers use AI to create convincing ads on social media featuring recognizable figures and celebrities that promise exclusive insider memberships or guaranteed high return investment tips. Scammers often clone voices and make deep-fake videos of celebrities or financial experts without their permission. Most reputable broker-dealers and investment advisors do not post specific investment advice on social media platforms. To learn more about this type of investment scam and victim stories, please read the New York State Attorney General investor alert on this topic.
Fake Cryptocurrency Projects: Cryptocurrency is a type of digital currency that exists only electronically. Scammers may create convincing impersonations of established businesses to lure victims into investing in a cryptocurrency market that doesn’t exist.
- The advertised crypto coins and tokens are a scam to steal money from the people who buy them.
- Always verify any advertised information directly through the advertised company’s official channels before investing.
Precious Metals and Gold Scams: Scammers may promote fraudulent investments involving precious metals such as gold or falsely claim that buying gold is the only way to protect your money.
- They may impersonate government officials and direct victims to buy gold bars and give them to a courier for ‘safekeeping.’
- Legitimate government agencies will not instruct consumers to do this.
Investment Recovery Scams: Consumers who have already lost money may later be contacted by someone promising to recover the funds for a fee. These offers are frequently another scam and can lead to additional losses.
Know The Warning Signs of an Online Scam
- Offers of guaranteed or unusually high returns or pressure to invest immediately.
- Unsolicited investment recommendations.
- Requests to move conversations to private messaging apps.
- Opportunities that require payments using cryptocurrency or wire transfers.
- Demands for additional fees after investing or before withdrawals.
- Overly complicated explanations and limited information.
- Claims of “insider information” or a “secret method” to generate wealth.
Protect Yourself Before Investing
Before investing, verify four important things:
- Verify the person.
- Verify the company.
- Verify the investment.
- Verify where your money is going.
Confirm identities independently and research companies using official government resources, such as Investor.gov hosted by the U.S. Securities and Exchange Commission (“SEC”). The SEC can confirm if the investment professional is licensed, registered and if they have a disciplinary history or customer complaints; verify an investment product or company is registered with the SEC; provide their financial reports for review; and provide information on common investment scams.
Understand how the investment works and confirm that any account or cryptocurrency wallet belongs to the business you intend to pay. Never invest in something you don’t understand. Be sure to always read the investment prospectus or disclosure statement carefully and ask a trusted professional for guidance if you aren’t completely clear on the details.
Take your time before making an investment decision. Resist pressure to act quickly. Research the opportunity yourself, using contact information you locate independently rather than information supplied by the promoter. Discuss significant investments with a trusted family member, friend or independent financial professional. Remember that popularity on social media, celebrity endorsements and positive online reviews are not proof that investment is legitimate.
If You Think You’ve Been Scammed
- Stop sending money immediately.
- Do not pay additional fees to release your funds.
- Contact your financial institution, preserve emails, text messages and payment records, and report the fraud promptly.
- Be cautious of anyone who later promises to recover your money for a fee.
Report Investment Scams
Consumers can report suspected investment scams to the Federal Trade Commission, the FBI Internet Crime Complaint Center, the U.S. Securities and Exchange Commission, and the New York State Attorney General. To report cryptocurrency fraud or file a complaint against a virtual currency company in New York State, contact the New York State Department of Financial Services.
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