New York Warns of Fake Crypto and AI as Scam Losses Hit $8 Billion

New York officials are warning that AI-generated content and fake cryptocurrency projects are making investment fraud more convincing. Reported investment scam losses exceeded $8 billion in 2025, rising 38% from the previous year.

WRITTEN BYKevin Helms
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Published:Aug 29, 2026, 1:30 AM EDT

Key Takeaways

• Investment scam losses surpassed $8 billion in 2025.
• AI helps fraudsters create convincing voices, videos, and ads.
• Fake crypto projects impersonate established businesses to lure investors.

Investment Scam Losses Rise 38%

Investment scams became the costliest fraud category tracked by the Federal Trade Commission in 2025 The state’s Division of Consumer Protection issued an AI investment scam warning on Aug. 26 after 144,041 consumers reported losing more than $8 billion, a 38% increase from 2024. The median reported loss reached $10,560

The schemes can begin through social media, dating apps, text messages, emails, online advertisements, or apparently friendly conversations. The FTC’s own April consumer alert put the same 2025 total at more than $7.9 billion, with a median individual loss above $10,000. That agency listed cryptocurrency alongside stocks and forex among the investments scammers pitch through fake coaching offers.

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.”

AI Deepfakes Promote Fake Crypto Investments

Artificial intelligence allows fraudsters to clone voices, fabricate videos, impersonate financial figures, and produce polished social media advertisements. An April warning from New York Attorney General Letitia James described schemes involving deepfake celebrity endorsements, fraudulent cryptocurrencies, pump-and-dump operations, and fake trading platforms promoted across Facebook, Instagram, and Whatsapp.

Victims may encounter professional-looking applications that display fabricated balances, returns, and trading activity. Some operators permit small initial withdrawals to establish credibility before pressing targets to deposit larger amounts. Similar tactics have appeared internationally, with Australian regulators recently dismantling 3,106 fraudulent cryptocurrency investment platforms during the 2026 financial year as AI-generated endorsements became increasingly difficult to distinguish from authentic promotions.

Fake Platforms Build Trust Before Demanding Fees

A separate Australian case showed how organized groups build an entire fake internet around a crypto investment that does not exist. Investigators detailed counterfeit trading platforms, fabricated news articles, and chatbots posing as support staff, deployed before a woman lost nearly $74,690. Operators may then ask for additional fees before releasing funds, which New York’s alert tells consumers never to pay.

New York officials advised consumers to confirm the identity of any promoter, verify the company and investment, and establish where their money will go before transferring funds. Common crypto scam warning signs include guaranteed high returns, unsolicited investment offers, high-pressure sales tactics, and projects lacking clear documentation. Anyone who suspects fraud should stop sending money immediately and report it to the FTC, the FBI’s Internet Crime Complaint Center, the SEC, or the New York Attorney General.

Trump Takes ‘Major Step’ Toward Shutting Down Crypto Scammers

The FBI received reports of $20.877 billion in internet-crime losses during 2025, while complaints involving cryptocurrency accounted for $11.37 billion.…

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Artificial intelligence (AI)CryptocurrencyNew York NY

Source: news.bitcoin.com