By Matthew Holloway |
The Arizona Corporation Commission (ACC) and the North American Securities Administrators Association (NASAA) are cautioning investors to remain vigilant this Christmas season amid an increase in sophisticated fraud schemes.
Drawing on data from NASAA’s 2025 Enforcement Report and its annual survey of investor threats, the ACC identified a dozen types of scams that state securities regulators say investors should watch for as fraudsters employ new technology, including artificial intelligence (AI), to target victims.
According to NASAA’s report, state securities regulators conducted more than 8,800 active investigations in 2024, resulting in fines and restitution totaling over $259 million. The report found that while scammers increasingly use technological tools to make schemes appear legitimate, the underlying goal remains to separate victims from their money.
“The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money,” said NASAA President Marni Rock Gibson.
ACC Chair Kevin Thompson echoed Gibson, emphasizing the role of advancing technology in enabling fraud, saying in the release that AI and other tools give “scam artists new tools to steal your money,” and that many fraudulent investment pitches play on investors’ fears rather than genuine innovation.
“Fraudsters are pitching new investments that often have nothing to do with latest tech developments and instead play on the fear of missing out on the next ‘best thing,’” he explained.
The 12 investor threats outlined by the Commission’s Securities Division include:
- Affinity or “Pig Butchering” schemes — long-term romance-based cons that build trust before prompting victims to invest in bogus platforms.
- Deepfake impersonations — use of AI-generated video and voice clones of celebrities or contacts to solicit funds.
- Phantom AI trading bots — fraudulent algorithms marketed as guaranteed return systems.
- Digital asset and crypto fraud — scams involving unregistered securities and exaggerated return promises.
- Fake AI equity pitches — sales of equity in fictitious AI companies or “pump and dump” schemes.
- Social media lures — investment scams originating on platforms such as Facebook or X.
- Short-form video hype — slick social media clips touting “get rich quick” opportunities.
- Text and WhatsApp traps — unsolicited messages that pivot into fraudulent investment offers.
- Targeting older investors — senior citizens are disproportionately targeted with both traditional and digital scams.
- Account takeovers — phishing and AI-assisted hacks that seize control of accounts to solicit funds from contacts.
- Website and app spoofing — cloned sites designed to harvest login credentials and funds.
- Unregistered solicitors — individuals selling investments without proper licensing; regulators opened 944 investigations in 2024 involving unregistered sellers.
The ACC’s Securities Division encourages investors to exercise skepticism, conduct independent due diligence, and contact a trusted third party before committing funds to any investment, the commission said, quipping they should review the list of threats and “check it twice to avoid ending up with a stocking full of coal.”
Investors looking to check the license status or disciplinary history of an investment promoter can contact the Securities Division’s Duty Officer at 602-542-0662 or SecuritiesDiv@azcc.gov, or visit azcc.gov/azinvestor for more information.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
