Social Media Scams Surge in 2025 as Cryptocurrency Fraudsters Target Retail Investors with AI and Emotional Tactics

In 2025, the threat of social media and cryptocurrency scams is expected to escalate significantly, posing a growing menace to retail investors. A recent survey conducted by regulatory officials in the United States and Canada highlights the innovative methods scammers are employing to deceive unsuspecting investors through social media and new technologies.

Social media platforms have become a prime hunting ground for cybercriminals. Nearly 32% of reported scams originated on platforms such as Facebook and X, while 31% were linked to messaging apps like Telegram and WhatsApp. These platforms provide scammers with the ability to conceal their true identities behind seemingly legitimate profiles, making it easier to lure potential victims. The rise of short-form video content on platforms like TikTok and Instagram Reels has further exacerbated the issue, accounting for 19% of all reported scams. Longer video formats on YouTube and Vimeo, which make up 14%, have also been used to spread deceptive investment opportunities that appear too good to pass up.

One of the most alarming trends identified by the survey is the use of emotionally charged scams, often referred to as “pig butchering.” These scams typically involve high-pressure sales tactics to promote “get rich quick” schemes, preying on the fear of missing out and the desire for easy wealth. Additionally, romance and affinity frauds have become increasingly prevalent, where criminals build fake relationships with their victims to convince them to invest large sums of money, ultimately draining their accounts and disappearing with the proceeds.

Investors are advised to exercise caution and thoroughly research any investment opportunity before committing funds. Leslie Van Buskirk, president of the North American Securities Administrators Association (NASAA) and Wisconsin securities administrator, emphasizes the importance of due diligence, stating, “Investigate before you invest.”

The survey also highlights the growing use of artificial intelligence (AI) in fraudulent activities. Nearly 39% of regulators believe that scammers will increasingly use AI-generated content to make their schemes appear legitimate. AI software can produce high-quality images and videos that deceive investors into considering fake investment opportunities. Deepfake scams, where scammers impersonate known figures or celebrities, are also on the rise. Around 22% of regulators anticipate an increase in such scams, with fraudsters exploiting deepfake technology to depict popular individuals endorsing phony crypto