The North American Securities Administrators Association (NASAA) released its annual list of the worst risks facing retail investors highlighting the worry-some data about crypto and social media scams.
According to the official report, financial scams using digital assets and cryptocurrency, social media apps, and emotionally charged marketing strategies are this year’s biggest concerns.
The poll emphasized the growing dangers of fraudulent schemes that prey on investors, frequently using false social media advertisements and cryptocurrency investments.
The results of NASAA’s investigation highlight the necessity of stricter laws and public education initiatives to stop these frauds. As cryptocurrency markets continue to flourish, both authorities and consumers must be attentive to avoid falling victim to these quickly evolving fraudulent operations.
NSAA Highlights Crypto Scam Rise
In its reports, NASAA highlights that scams aimed at investors through popular platforms commonly used in North America, such as Facebook and X (31.7%), as well as text and voice communication services, like Telegram and WhatsApp (31.3%) have seen a huge rise in the recent past.
Additionally, scammers frequently use sites for short-form video material like TikTok and Instagram Reels (19.0%) and long-form video content like YouTube and Vimeo (14.1%) in order to reach victims.
Also, regulators are concerned about the possibility for artificial intelligence to be used against investors.
Is AI a Threat For Crypto Investors?
NASAA report highlights that by 2025, state securities authorities anticipate that criminals will employ artificial intelligence (AI) to produce professional graphics, films, and content that lend validity (38.9%) and deepfake photos, movies, and voices of celebrities and people the targeted victims know (22.2%).
“The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money,” said Leslie Van Buskirk, NASAA President and Wisconsin Securities Administrator.
They add, “AI investing is the latest technology to make waves in the investing landscape and fraudsters are pitching new investments that often have nothing to do with the latest tech developments and instead play on fear of missing out or get rich quick schemes along with other heightened emotions.”
Authorities claim that criminals are already using AI for a variety of purposes. The bad actors are producing and selling trading bots that use artificial intelligence (AI), selling stock in businesses, allegedly developing an AI model, or committing account takeover frauds.
The technology is employed in complex and advanced assaults including identity theft, impersonating websites and apps, and utilizing people’s real photos online.
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