Financial scammers are using buzzing about cryptocurrency, using more and more social media to falsify their credentials and using advances in artificial intelligence to attack potential investors, according to a new Report the Association of North American Insurance Administrators, an Association of American and Canadian Regulators.
Investors' interest in Cryptocurrency received another recent incentive by President Donald Trump and his administration, which have signaled a friendly regulatory environment, including the proposal of creating a “strategic reserve of cryptos” for the government to maintain some digital assets.
Scammers are also supported at the moment, offering false investments to make people.
“Frauders often exploit the buzzing that comes with innovation and technology to benefit from investors,” wrote a NASAA spokesman via email. “Combine it with many ways that technology and social media link us together, and bad actors find important opportunities to try and tap investors.”
This week, the insurance and exchange commission moved forward with a new force of Sec Crypto Task Forceled by Commissioner Hester Peirce. Task Force will hold public round tables to develop a Cryptocurrency regulatory framework after accusing the preliminary leadership of the SEC of the creation of a “hostile environment” for sector innovation.
Nasaa also highlighted the risks of financial fraud widespread through popular social media platforms, including Facebook, WhatsApp, X (once Twitter), Tiktok, Instagram and YouTube.
Regulators warn users to be careful, in particular, of “Finfluencers” that provide tips and investment opportunities, as they can falsify their expertise.
“Investment promoters are increasingly registering to find investors … and their money,” Nasaa wrote.
Regulators are also accumulating with another trend area: artificial intelligence.
Nasaa said that the potential for using it to harm investors has “disturbed” regulators, with expectations of a 2025 raising of fraudsters who use it to generate graphics, videos and other contents that create a sense of legitimacy “for potential investors. They are also protected by the use of images, videos and voices of celebrities or people “known to target victims”.
“Bad actors are creating and selling trade bots with him, selling capital to the company, seemingly developing a model he or fraud for receiving account accounts,” Nasaa wrote. “Technology is used in sophisticated and detailed attacks such as identity fraud, using existing pictures of people online and websites and spoofing of app.
According to NASAA spokesperson, 60% of regulators said fraudsters are using it to create false online profiles, using pictures of existing accounts and fake images to give a sense of legitimacy on websites and presentations.
However, some tactics remain proven and truthful among fraudsters.
Nasaa noted that many schemes play in people's emotions, including an increase in romantic relationships and deceptions. In these cases, fraudsters develop what feels like emotional relationships before seeking investment and sometimes drain the victim's bank accounts before disappearing.
NASAA conducts the annual list by surveying state and provincial securities regulators in the United States and Canada.