by Matthew Holloway | Dec 19, 2025 | Economy, News
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.
by Jonathan Eberle | Sep 17, 2025 | Economy, News
By Jonathan Eberle |
Arizona residents could collectively lose millions of dollars to fake gambling websites this fall, according to a new study analyzing Federal Trade Commission (FTC) scam reports. The report, conducted by online gaming marketplace Chicks Gold, found that Arizona consumers reported $7.9 million in losses between April and June of this year from scams linked to fake gambling and gaming sites. Analysts warn those numbers could rise sharply as the NFL season, the most bet-on sport in the United States, fuels a wave of online wagering.
“Scammers know there’s likely to be a surge in inexperienced bettors searching online for wagering platforms,” said Al Alof, CEO of Chicks Gold and spokesperson for the study. “That makes them especially vulnerable to fake sportsbooks or offers that appear too good to be true.”
The study examined scams across five FTC subcategories connected to fraudulent gambling platforms: malware and exploits, online shopping, tech support, social networking, and prizes, sweepstakes, and lotteries. Nationally, 106,531 reports were filed in Q2, totaling nearly $192 million in losses, or an average of $1,965 per report. Arizona’s losses were significantly higher: 2,830 reports led to nearly $7.95 million stolen, averaging $2,811 per report—43% higher than the national average.
The most damaging category for Arizona residents was prizes, sweepstakes, and lotteries, which accounted for $4.1 million lost across just 408 reports, averaging more than $10,000 per incident. That placed Arizona sixth in the nation for per-report losses linked to these types of scams, behind Montana, Maine, South Dakota, Wyoming, and North Dakota.
According to the study, fraudulent gambling and gaming operations exploit consumers in several ways:
- Malware and exploits: Fake casino sites that prompt users to download spyware disguised as “mods” or “cheat tools.”
- Online shopping scams: Fake sites selling in-game items, currency, or memberships that never arrive.
- Tech support fraud: Pop-ups or sham help desks convincing players to share sensitive information.
- Social networking scams: Fake or hijacked profiles distributing phishing links in gaming communities.
- Prizes, sweepstakes, and lotteries: Lures promising jackpots or loot boxes that require upfront payment or personal data.
“These scams thrive on community and urgency,” Alof said. “Gamers searching for new releases or fans eager to place bets can be tricked into handing over money or sensitive information.” The rise in gambling scams has also been noted by the Better Business Bureau (BBB), which reports that complaints about online gambling platforms more than doubled since 2023. Users described problems ranging from malfunctioning slot games and altered wagers to deceptive ads and phishing attempts.
To protect themselves, Alof urged consumers to:
- Verify licensing and URLs: Legitimate sportsbooks are licensed by state regulators. Misspelled domains or unofficial app stores are red flags.
- Avoid unrealistic offers: “Guaranteed wins” or oversized bonuses are often bait for scams.
- Use secure payments: Credit cards or PayPal provide better protection than wire transfers or gift cards. Enabling two-factor authentication also reduces risk.
Analysts caution that both sports bettors and traditional gamers face exposure. Beyond the NFL betting surge, Alof noted that the release of popular video games creates another avenue for fraud. When legitimate gaming sites crash under demand, players may turn to unverified download links, which scammers exploit. With Arizona already posting losses above the national average, experts warn vigilance will be crucial in the months ahead.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Aug 30, 2025 | Economy, News
By Jonathan Eberle |
Financial fraud is emerging as one of Arizona’s most costly economic threats, with residents projected to lose more than $4 billion in 2025, according to a new analysis from the Common Sense Institute (CSI). The report, The Impact of Financial Fraud in Arizona, outlines how scams, identity theft, and other fraudulent activity are draining household finances and hampering economic growth. In 2024, Arizonans reported nearly 55,000 fraud cases, leading to $521 million in losses—an increase of 384 percent since 2020.
CSI economists estimate that only about 14 percent of fraud is ever reported, meaning the true cost is far higher. By next year, the institute projects that reported losses could reach $558 million, with an additional $3.4 billion in unreported incidents.
“Arizona is projected to lose over $4 billion to financial fraud in 2025. That’s nearly 1% of the state’s total GDP,” said Zachary Milne, senior economist and research analyst at CSI. “Fraud is a systemic drain on Arizona’s families and the economy. Eliminating these losses would mean billions in growth, tens of thousands more job opportunities, and lower prices for Arizonans.”
Key Findings from the Report
- The average loss per incident in Arizona was $6,270—nearly 30 percent higher than the national average.
- Arizona ranked 11th nationally for fraud cases, with 1,459 reports per 100,000 residents.
- Older residents face the greatest impact. Adults 60 and older account for two-thirds of internet-based fraud losses, with those 70 and older suffering the highest average dollar losses.
- For every dollar lost to fraud, Arizonans lose $1.06 in personal income due to broader economic effects. Families also face slightly higher prices on everyday goods and services.
- Fraud contributes to reduced economic activity, costing Arizona more than 45,000 jobs.
Fraud schemes cited in the report range from identity theft and phishing to romance scams, wire transfer fraud, and elder financial abuse. As more commerce moves online, CSI researchers warn that the risks will only grow.
The study also highlights how financial crime affects more than direct victims. Lost spending power, higher security costs, and reduced consumer confidence create ripple effects across the state’s economy. CSI estimates fraud-related losses shrink Arizona’s GDP by $5.2 billion annually. Nationally, the FBI and Federal Trade Commission tracked tens of billions of dollars in fraud losses in 2024, part of a steady upward trend over the past five years. Arizona, with its above-average loss rate and older population, is particularly vulnerable.
The report concludes that combating fraud is not only a matter of protecting individuals but also of preserving Arizona’s long-term economic health.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jul 17, 2025 | Economy, News
By Ethan Faverino |
Scammers are posing as recruiters, offering tempting remote job opportunities to steal your money or personal information.
The Better Business Bureau (BBB) is urging consumers to stay vigilant, as job scams continue to rise. According to the Federal Trade Commission (FTC) over 103,000 employment scam complaints were made in 2024, resulting in an overwhelming $220 million in losses.
Fraudulent recruiters claim to represent well-known companies and reach out via email, text message, or even social media platforms such as LinkedIn and WhatsApp.
These messages often come from personal email accounts like @gmail.com or @yahoo.com rather than corporate domains.
Scammers may send what appears to be an official invitation for a virtual interview, complete with job descriptions and benefits.
However, they often move quickly, extending job offers and sending paperwork that requests sensitive information, such as bank account details, Social Security number, or even in some cases, cryptocurrency payments for “training” or “equipment.”
According to the BBB’s 2024 Scam Tracker Risk Report, employment scams ranked among the top five riskiest scams, with a medium loss of $1,500 per victim.
It is important to remember that legitimate employers do not request sensitive information or payment until after a formal hiring process is complete.
There are multiple ways to spot a job scam.
Make sure to check the sender’s email address or contact details. Legitimate recruiters use verified company emails or phone numbers, not personal accounts like Gmail and Yahoo.
Watch out for requests for personal information or any form of payment. Make sure that you are not asked to share your Social Security number, driver’s license number, bank details, or make any upfront payments before an interview or offer.
The FTC reported that 68% of job scam victims shared personal information before recognizing the fraud.
If you are unaware or uneasy about the recruiter or the company, you can always search for the name and companies online to confirm legitimacy. Most of the time you can go straight to the company’s official website or HR department or use other websites like the Better Business Bureau to make sure the recruiter and or company is legit.
Always be skeptical of job offers that are “too good to be true.” Job offers that promise high pay for little work or include vague responsibilities should raise concern.
The BBB notes that 43% of job scam complaints involved remote work offers, often targeting younger job seekers.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by AZ Free News | Sep 6, 2021 | News
The Arizona Attorney General’s Office (AGO) is warning Arizonans to watch out for Hurricane Ida charity scams. According to the AGO, there are already reports of fake organizations popping up asking people for money to help victims in Louisiana.
Hurricane Ida hit Louisiana on Sunday and has caused widespread catastrophic damage. While many are eager to help those in need, Attorney General Brnovich wants consumers to do their homework before donating.
The AGO offers the following tips to avoid scams:
- Never give on impulse. Don’t give in to high-pressure requests for contributions or donations. Legitimate charities will not pressure you for an immediate donation and are happy to provide information about their charity for you to review.
- Do your research about the organization and ask questions. For example, how will the funds reach those in need?
- Obtain written information (including annual reports) about a charity before you donate. Always know how much of your donation will actually go to the charity itself versus administrative costs. You can find out more about a charity through Charity Navigator‘s website or the Better Business Bureau’s www.give.org.
- Do not give donations in cash or by wire transfer.
- Make contributions directly to known organizations rather than relying on a third-party.
- Watch out for charities with names that sound similar to well-known organizations. Oftentimes, these sound-alike names are scams.
- Be cautious of individuals representing themselves as surviving victims of a disaster or as government officials asking for donations.
- Do not give unsolicited callers your credit card number or bank account information over the phone, even if the call appears to be legitimate.
- Do not click on links in unsolicited emails and text messages asking you to donate. Even if a message seems legitimate, it could be a phishing attempt. If you want to donate, contact the charity at a website or phone number you know to be valid.
- Be cautious when donating to a GoFundMe fundraiser. It is common for scammers to set up GoFundMe fundraisers after highly publicized events and then disappear with the money.
“It’s disgusting how fraudsters waste no time after a natural disaster to capitalize on people’s goodwill,” said Attorney General Mark Brnovich. “Arizonans are very generous, and I want to make sure they are donating to a legitimate charity that has experience helping victims quickly.”
The AGO advises consumers who believe they have been a victim of consumer fraud, to contact the Arizona Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the metro areas at 1(800) 352-8431.
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