Investment Fraud Losses Exceed $8 Billion in 2025, New York State Warns of AI Forgery and Fake Crypto Projects

New York state officials have warned that AI-generated content and fake cryptocurrency projects have made investment fraud more deceptive. Losses from investment fraud exceeded $8 billion in 2025, a 38% increase from 2024, with 144,041 consumers reporting losses, and a median loss of $10,560 per incident. AI can be used to clone voices, forge videos, impersonate financial professionals, and create social media advertisements. New York Attorney General Letitia James pointed out that scammers attract investors through deepfake endorsements of celebrities, fake cryptocurrencies, pump-and-dump schemes, and fraudulent trading platforms. Some fake platforms display forged account balances, profits, and transaction records, allowing victims to withdraw small amounts to build trust, before requesting additional funds or fees. New York state officials recommend that consumers verify the identities of promoters, companies, and investment projects, and confirm the destination of funds. According to the FBI, reported losses from cybercrime in 2025 amounted to $20.877 billion, with complaints involving cryptocurrency accounting for $11.37 billion. Common signs of fraud include promises of high returns, unsolicited investment opportunities, high-pressure sales tactics, and projects lacking clear documentation.

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