A Growing Threat in 2025: Social Media Cryptocurrency Scams

The North American Securities Administrators Association (NASAA) illuminated a new threat to retail investors in 2025: a growing menace of social media and cryptocurrency scams. Drawing on data assembled from a survey of United States and Canadian regulatory officials, the report discloses the astounding methods scammers are using on social media and through new technologies to trap unsuspecting investors.

Social Media Became a Scammer’s Platform

A recent NASAA survey shows that cybercriminals are now using social media more to lure their victims. Nearly 32% of the scams reported were discovered to have originated on social media platforms such as Facebook and X, and 31% were linked to messaging apps such as Telegram and WhatsApp. Social media is becoming the ideal hideout for scammers to lure potential investors, as they can conceal themselves behind what seem to be real profiles.

The rise of short-form video content has also made it easier for scammers to attract attention. Platforms like TikTok and Instagram Reels have become major tools for fraudulent schemes, accounting for 19% of all reported scams. Even longer video formats on YouTube and Vimeo, which make up 14%, have been used to spread deceptive investment opportunities that seem too good to pass up.

Emotionally Charged Scams: “Get Rich Quick” and Romance Frauds

One of the most concerning scams that NASAA flagged is those designed to manipulate emotions. These frauds, also referred to as “pig butchering,” typically start with high-pressure sales to adopt “get rich quick” schemes. They entice victims with the promise of quick returns, taking advantage of the fear of missing out and the aspiration for easy wealth. At the same time, romance and affinity frauds have become increasingly evident. In these fraudulent schemes, criminals build fake relationships with their victims, slowly convincing them to invest large sums of money, eventually draining their accounts and disappearing with the proceeds.

NASA has warned investors to exercise caution concerning investments that appear to be too good to be true and to research well before they invest. As Leslie Van Buskirk, president of NASAA and Wisconsin securities administrator, advises: “Investigate before you invest.”

Artificial Intelligence and Deepfake Scams

The second issue that is being talked about in the survey is the use of artificial intelligence (AI) for fraud. Almost 39% of the regulators think that fraudsters will increasingly use AI-based content to make their fraud look legitimate. AI software can generate business-grade images and videos that look legitimate, misleading investors into considering fake investment opportunities.

Deepfake scams are on the rise. Scammers impersonate known faces or celebrities. Around 22% of regulators are of the view that such scams will increase. Scammers exploit deepfake technology to depict popular people, such as Elon Musk or Tim Cook, endorsing phony crypto investments. In 2024, crypto exchange Bitget’s survey revealed a 245% spike in deepfake scams.

Crypto Scams Financial Impact

Crypto scams are impacting investors financially, with billions of dollars being lost to fraud. According to a report from blockchain forensic firm Chainalysis, deposits to pig butchering scams surged by 210% in 2024. Separate research from web3 security firm Cyvvers revealed that more than $3.6 billion was lost to these scams. These figures show just how damaging cryptocurrency scams are, not only to investors but to the entire crypto industry.

Hence, the emergence of social media scams, AI applications, and deepfake technology underscores the ever-changing nature of cryptocurrency scams. As technology advances and scams become sophisticated, investors need to be vigilant at all times, always investigating and verifying the authenticity of any investment opportunity and shunning deals that are too good to be true. By doing this, they can shield themselves from becoming victims of the increasing trend of fraud in the crypto market.