Investment fraud losses hit $8 billion amid rise in AI deepfakes

Investment fraud losses reached over $8 billion in 2025, marking a 38% increase from the previous year, according to reports from the New York Division of Consumer Protection and the Federal Trade Commission (FTC). The rise in losses is being driven by the use of artificial intelligence to create sophisticated deepfake videos and audio that impersonate financial experts and celebrities to lend credibility to fraudulent schemes.

Scammers are utilizing social media, dating apps, and messaging platforms like WhatsApp and Telegram to build rapport with victims. These criminals often promote fake cryptocurrency projects, stocks, or forex coaching. Once trust is established, they use fabricated investment dashboards and fake account balances to encourage further transfers. In many cases, victims are told they must pay additional taxes or fees before they can withdraw their supposed profits.

The FBI reported that internet crime losses reached approximately $21 billion in 2025, with cryptocurrency-related reports accounting for over $11 billion in losses. Authorities warn that while AI is a growing tool for impersonation, the core risk lies in the deceptive structure of these scams, which often involve impersonating legitimate businesses to lure investors into non-existent markets.