The Arizona Corporation Commission (ACC) and the North American Securities Administrators Association (NASAA) are alerting the public to increased risks of investment scams during the holiday season. The warning comes as scammers adopt new technologies, including artificial intelligence, to carry out fraud.
According to NASAA’s 2025 Enforcement Report, state securities regulators conducted more than 8,800 active investigations in 2024. These efforts resulted in over $259 million in fines and restitution. The report notes that while scam methods evolve with technology, the intent remains to defraud investors.
“The rapid growth of technology and the rise of artificial intelligence give scam artists new tools to steal your money,” said Chair Kevin Thompson. “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.’”
The ACC’s Securities Division has outlined a list of twelve top investor threats for this year:
1. Affinity or “Pig Butchering” Schemes: Scammers build relationships online and persuade victims to invest in fake platforms.
2. Deepfake Impersonations: Over 22 percent of scammers use AI-generated videos or voices to solicit funds.
3. Phantom AI Trading Bots: Fraudulent claims about guaranteed returns from non-existent AI trading algorithms.
4. Digital Asset & Crypto Fraud: Ongoing scams involving unregistered crypto securities and false promises of high returns.
5. Fake AI Equity Pitches: Selling shares in companies claiming AI breakthroughs, often as part of pump-and-dump schemes.
6. Social Media Lures: Nearly one-third of investigations began with scams on social media platforms.
7. Short-Form Video Hype: Professional-looking videos target young or financially vulnerable people with get-rich-quick schemes.
8. Text & WhatsApp Traps: Unsolicited messages pivot into conversations about exclusive investment opportunities.
9. Targeting Older Investors: More than 1,600 cases involved seniors targeted by both traditional and digital scams.
10. Account Takeovers: Using phishing and AI, scammers seize financial or social media accounts to steal money or impersonate victims.
11. Website & App Spoofing: Fraudsters use AI graphics to clone legitimate websites; users should check URLs carefully for redirects.
12. Unregistered Solicitors: Despite professional appearances, many promoters lack proper licensing; there were 944 such investigations in 2024.
The ACC urges individuals to be cautious with any investment opportunity and recommends verifying promoter credentials before proceeding. Investors can contact the Securities Division at 602-542-0662 or email SecuritiesDiv@azcc.gov for license verification or disciplinary history checks. Additional information is available at azcc.gov/azinvestor.
