The Tennessee Department of Commerce & Insurance’s Securities Division and the North American Securities Administrators Association (NASAA) are warning investors that bad actors are preparing to unwrap a new wave of sophisticated schemes. Drawing on data culled from NASAA’s 2025 Enforcement Report and its annual survey of top investor threats, TDCI has identified top investors frauds and threats to watch out for this holiday season.
According to NASAA’s 2025 Enforcement Report, state securities regulators conducted over 8,800 active investigations in 2024, leading to more than $259 million in monetary fines and restitution. The data reveals that while scammers are using new technologies like Artificial Intelligence (AI) to dress up their schemes, their nefarious goal remains the same: separating victims from their hard-earned money.
“The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money,” said Elizabeth Bowling, TDCI Assistant Commissioner for the Securities Division Elizabeth Bowling. “Fraudsters are pitching new investments that often have nothing to do with latest tech developments and instead play on consumers’ fear of missing out.”
TDCI urges investors to review the following list of threats and check it twice to make sure you do not wind up with a stocking full of coal.
1. Affinity or “Pig Butchering” Scheme. A major focus of 2025 enforcement, this long con combines romance and finance. Scammers befriend victims online, build trust over time, and convince them to invest heavily in fake platforms before disappearing with the funds.
2. Deepfake Impersonations. Regulators warn that 22.2% of bad actors are now using AI to generate deepfake videos and cloned voices of celebrities or trusted friends to solicit money or endorse fake products.
3. Phantom AI Trading Bots. Criminals sell AI-powered “trading bots” that promise guaranteed returns. These are often black-box scams where the algorithm and the profits do not exist.
4. Digital Asset & Crypto Fraud. Consistently a top threat, digital asset scams accounted for hundreds of investigations in 2024. These often involve unregistered securities and vague promises of high returns in the crypto space.
5. Fake AI Equity Pitches. Scammers are selling stock in companies that purportedly develop breakthrough AI models. These are often “pump and dump” schemes or sales of equity in companies that are entirely fictitious.
6. Social Media Lures. Regulators report that nearly 32% of investigations opened in 2024 involved scams originating on platforms like Facebook and X. If an investment opportunity appears in your newsfeed, approach with extreme caution.
7. Short-Form Video Hype. Scammers are increasingly using TikTok and Instagram Reels to post slick, professional-looking videos that tout “get rich quick” schemes to younger demographics.
8. Text & WhatsApp Traps. Unsolicited messages on Telegram and WhatsApp are a growing threat. These often start as a “wrong number” text that pivots into a conversation about an exclusive investment opportunity.
9. Targeting Older Investors In 2024. Regulators investigated over 1,600 cases involving senior victims. Older investors are specifically targeted with traditional scams involving promissory notes and equities, as well as newer digital frauds.
10. Account Takeovers. Using AI and phishing, fraudsters are seizing control of existing financial or social media accounts to steal funds or solicit money from the victim’s contact list under the guise of an emergency.
11.Website & App Spoofing Using AI to generate professional graphics, scammers create clone websites that look identical to legitimate financial institutions to trick users into handing over login credentials and funds.
12. Unregistered Solicitors Despite professional-looking websites and pitches, many sellers are not licensed. In 2024, regulators opened 944 investigations involving unregistered individuals.
Questions about an investment? Contact the Tennessee Department of Commerce & Insurance’s Securities Division at tn.gov/securities or 800-863-9117 for more information, if you have questions, or if you suspect a securities fraud has occurred.
About the Tennessee Department of Commerce & Insurance. Protecting Tennesseans, empowering professionals. Our divisions include the State Fire Marshal’s Office, Insurance, Securities, Regulatory Boards, the Tennessee Law Enforcement Training Academy, the Tennessee Emergency Communications Board, and TennCare Oversight.
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