New York Warns of Fake Crypto and AI as Scam Losses Hit $8 Billion

Investment fraud has emerged as the costliest fraud category tracked by U.S. regulators, with reported losses surpassing $8 billion in 2025. According to New York's Division of Consumer Protection, which issued a formal warning on August 26, 2026, reported losses climbed 38% compared to 2024, affecting 144,041 consumers. The Federal Trade Commission independently confirmed comparable figures, citing more than $7.9 billion in reported investment scam losses for 2025. The median reported loss reached $10,560 per victim, a significant increase that underscores both the scale and sophistication of contemporary fraud schemes.

Artificial intelligence has fundamentally altered the fraud landscape by enabling criminals to operate at scale with unprecedented credibility. Fraudsters now deploy AI-generated deepfakes to clone voices, fabricate video testimony from purported financial advisors or celebrities, and produce polished social media advertising. These synthetic media tools allow scammers to create highly convincing marketing materials and impersonations that overcome traditional skepticism. Secretary of State Walter T. Mosley warned that "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."

Cryptocurrency has become a primary target vehicle for these sophisticated schemes. Fraudsters deploy fake cryptocurrency projects that impersonate legitimate businesses and established financial figures, often leveraging AI-generated content to build false credibility. The FTC's April 2025 consumer alert specifically identified cryptocurrency alongside stocks and foreign exchange as leading investment categories targeted through deceptive coaching offers. Initial contact typically occurs across multiple channels—social media platforms, dating applications, text messages, emails, online advertisements, and seemingly innocuous personal conversations—creating multiple vectors for victim acquisition.

The scale of losses extends beyond New York state metrics. FBI data cited in supplemental reporting indicates Americans who submitted cryptocurrency-related complaints totaled 181,565 in 2025, with cumulative losses exceeding $11 billion in that category alone. When aggregated with broader cybercrime losses, total cybercrime costs to Americans approached $21 billion in 2025, reflecting the pervasive damage of AI-enabled fraud infrastructure. Regulatory guidance emphasizes that investment offers exhibiting characteristics of excessive returns, guaranteed performance, or pressure for rapid commitment warrant heightened scrutiny, particularly when accompanied by AI-enhanced personalization or celebrity impersonation tactics.