New York Warns of Fake Crypto and AI Scams as Losses Soar to $8 Billion

New York officials are sounding the alarm about AI-generated content and fake cryptocurrency projects that are making investment fraud more convincing. According to New York's Division of Consumer Protection, reported investment scam losses exceeded $8 billion in 2025, a 38% increase from the previous year.

The median reported loss reached $10,560, with scams starting through various channels such as social media, dating apps, text messages, emails, online advertisements, or friendly conversations. The Federal Trade Commission (FTC) also put out an alert in April, listing cryptocurrency alongside stocks and forex as investments scammers pitch through fake coaching offers.

New York 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.' He added that if it seems too good to be true, it probably is.

AI 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.