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A state securities regulator issued 12 investor warnings ahead of year-end, cautioning that fraud activity is accelerating as scammers exploit FOMO, new technologies, and holiday urgency to lure investors into costly schemes.
12 Top Investor Threats Mount as State Regulator Warns FOMO Is Accelerating Losses
State securities regulators are warning investors to stay alert as year-end fraud activity climbs. The Tennessee Department of Commerce & Insurance (TDCI)’s Securities Division unveiled “the 12 top investor threats” on Dec. 16, highlighting specific schemes expected to intensify during the holiday season.
The regulator stated:
The data reveals that while scammers are using new technologies like Artificial Intelligence (AI) to dress up their schemes, their nefarious goal remains the same: separating victims from their hard-earned money.
The guidance draws on enforcement findings compiled with the North American Securities Administrators Association, reflecting thousands of investigations and significant financial harm to investors nationwide.
The first of the 12 warnings outlined by the Securities Division involves affinity, or “pig butchering,” schemes that blend online relationships with fraudulent investment platforms. Another warning focuses on deepfake impersonations that use AI-generated voices or videos of trusted figures. A third highlights phantom AI trading bots that claim guaranteed returns from systems that do not exist. The fourth warns that digital asset and crypto fraud continues through unregistered offerings and vague profit promises. The fifth involves fake AI equity pitches that promote shares in fictitious or manipulated companies.
Read more: FBI Warns of Ruthless Crypto Recovery Scam Preying on Victims Twice
The sixth highlights social media lures that often originate on platforms such as Facebook and X. The seventh points to short-form video hype that spreads “get rich quick” claims on TikTok and Instagram Reels. The eighth involves text and Whatsapp traps that begin with unsolicited messages and shift into investment solicitations. The ninth concerns scams targeting older investors that exploit both traditional products and digital assets.
The 10th involves account takeovers that hijack financial or social media profiles to extract funds. The 11th covers website and app spoofing that mimics legitimate financial institutions to steal credentials. The 12th involves unregistered solicitors who present professional-looking pitches without proper licensing. Regulators urge investors to independently verify registrations and question unsolicited opportunities.
TDCI Assistant Commissioner for the Securities Division Elizabeth Bowling commented:
Fraudsters are pitching new investments that often have nothing to do with latest tech developments and instead play on consumers’ fear of missing out.
FAQ ⏰
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What are regulators warning investors about this holiday season?
State securities regulators say AI-powered scams and crypto fraud surge at year-end. -
How are scammers using Artificial Intelligence in investment schemes?
Fraudsters deploy deepfake videos, voices, and fake AI trading bots to appear legitimate. -
Which platforms are most linked to current investment scams?
Social media, short-form video apps, text messages, and Whatsapp are key entry points. -
How can investors protect themselves from unregistered solicitors?
Regulators advise verifying registrations independently and rejecting unsolicited pitches.