California Attorney General Rob Bonta has issued a stark warning to Generation Z about a surge in sophisticated cryptocurrency scams spreading across social media platforms like TikTok, Instagram, Twitch, and online gaming sites. Fraudsters are leveraging artificial intelligence and deepfakes to quickly steal money from young Americans, who are increasingly targeted through digital investment schemes and livestreams.
In 2025, Americans lost a staggering $20.9 billion to internet-based scams, with $11.4 billion attributed to cryptocurrency fraud, according to figures cited by Bonta. He emphasized that while these scams are not new, the rise of cryptocurrency has given predators a powerful new tool to exploit victims. Scammers are using AI-generated impersonations, fake investment platforms, and malicious software to drain digital wallets, making it nearly impossible to recover stolen funds.
Authorities have identified several common schemes targeting Gen Z, including sextortion, where criminals threaten to release intimate images unless victims send money or cryptocurrency. Other tactics involve AI-generated voices and deepfake videos impersonating relatives, celebrities, or trusted figures. Fraudsters also lure victims into fake cryptocurrency investment or gaming platforms that appear legitimate but are designed to steal funds. Another tactic, known as a 'rug pull,' involves promoting a cryptocurrency to drive up its price before the scammers sell their holdings, leaving other investors with significant losses.
Bonta urged young people to be particularly cautious when approached with investment opportunities or requests for cryptocurrency payments through social media. He recommended taking at least nine seconds to reconsider before clicking suspicious links, engaging with unfamiliar accounts, or transferring money. The attorney general also warned consumers against using cryptocurrency ATMs to send money to strangers, noting that scammers frequently exploit such transactions.