New York officials are warning consumers about increasingly sophisticated investment scams that use artificial intelligence, fake trading platforms and online relationships to steal money.
The state Division of Consumer Protection cited Federal Trade Commission data showing 144,041 consumers reported more than $8 billion in investment-scam losses during 2025, a 38% increase from 2024. The median reported loss was $10,560, making investment scams the FTC's costliest fraud category for the year.
Investment schemes can begin through social media, text messages, dating apps, online advertisements, email or an apparently friendly conversation, the agency said. Scammers may use AI-generated voices and faces, deepfake videos, fake celebrity endorsements and convincing phishing messages to make an offer appear legitimate.
“New Yorkers need to be vigilant against scammers, who may be able to create increasingly sophisticated and realistic messaging using AI technology or other means to steal your hard-earned money,” Secretary of State Walter T. Mosley said. “If it seems too good to be true, it probably is.”
Department of Financial Services Acting Superintendent Kaitlin Asrow said the agency works to combat fraud and maintain access to affordable financial services as scams become more sophisticated.
Fake dashboards can build false confidence
Officials said scammers may direct victims to professional-looking websites or apps displaying phony account balances, investment returns and trading activity. Some schemes allow a small withdrawal early in the process to build trust before pressuring the victim to invest a much larger amount.
Relationship investment scams often begin with an unexpected message, social-media contact, dating-app match or online friendship. Rather than immediately seeking money, the scammer may spend time building a romantic, friendly or professional relationship before discussing supposed investment success, insider information or guaranteed returns.
Other schemes use cloned celebrity or financial-expert voices and deepfake videos to promote exclusive memberships or high-return tips. The state cautioned that reputable broker-dealers and investment advisers generally do not publish specific investment advice through social-media posts.
Cryptocurrency, gold and recovery offers carry risks
Fake cryptocurrency projects may impersonate established companies or advertise coins and tokens tied to a market that does not exist. Officials advised consumers to verify advertisements through a company's independently located official channels before sending money.
Precious-metals scams can involve claims that buying gold is the only way to protect savings. In some cases, scammers impersonate government officials and direct victims to purchase gold bars and turn them over to a courier for supposed safekeeping; legitimate government agencies will not give those instructions, the alert said.
People who have already lost money may also be targeted by recovery scams. Someone may offer to retrieve the missing funds in exchange for an upfront fee, causing the victim to lose additional money.
Warning signs include pressure and guaranteed returns
The Division of Consumer Protection said warning signs include guaranteed or unusually high returns, pressure to invest immediately, unsolicited recommendations and requests to move conversations to private messaging apps.
Consumers should also be wary of demands for cryptocurrency or wire-transfer payments, additional fees before withdrawals, complicated explanations with limited documentation and claims involving insider information or a secret wealth-building method.
Before investing, officials recommend independently verifying the person, company, investment and destination of the money. Consumers can use U.S. Securities and Exchange Commission resources to check whether an investment professional or product is registered and to review disciplinary histories, complaints and company financial reports.
The agency also advised consumers to understand how an investment works, read prospectuses or disclosure statements, verify account and cryptocurrency-wallet ownership, resist pressure to decide quickly and discuss significant investments with a trusted person or independent financial professional.
Victims should stop payments and preserve records
Anyone who believes they were scammed should stop sending money, decline demands for additional fees, contact their financial institution and preserve emails, text messages and payment records.
Suspected investment scams can be reported to the Federal Trade Commission, the FBI Internet Crime Complaint Center, the U.S. Securities and Exchange Commission and the New York State Attorney General. Cryptocurrency fraud and complaints involving virtual-currency companies in New York can also be reported to the state Department of Financial Services.
The Division of Consumer Protection's Consumer Assistance Helpline is available at 1-800-697-1220 from 8:30 a.m. to 4:30 p.m. Monday through Friday, excluding state holidays. Consumer complaints can also be filed with the division online at any time.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.