NY Warns of Fake Crypto Investments and AI-Generated Scams
New York officials have issued a warning about fake cryptocurrency investments and AI-generated scams that have resulted in losses of over $8 billion in 2025. The state's Division of Consumer Protection reported a 38% increase in investment scam losses compared to the previous year, with a median loss of $10,560.
The scams often start through social media, dating apps, text messages, emails, online advertisements, or seemingly friendly conversations. Scammers may use AI technology to create sophisticated and realistic messaging to steal victims' hard-earned money.
According to the New York Attorney General's office, deepfakes can be used to clone voices, fabricate videos, impersonate financial figures, and produce polished social media advertisements. Some operators permit small initial withdrawals to establish credibility before demanding larger deposits.
New York officials advise consumers to verify the identity of promoters, check the company and investment legitimacy, and ensure 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.