State officials warn of technology threatening online victims with sophisticated scams

Bad actors are preparing to unveil a new generation of sophisticated schemes, according to the Hawaiʻi Department of Commerce and Consumer Affairs Business Registration Division.

Drawing on data from the North American Securities Administrators Association’s 2025 Enforcement Report and an annual survey of top consumer threats, the department’s Commissioner of Securities, Ty Y. Nohara, has identified top consumer frauds and threats to watch for this holiday season.

According to the 2025 Enforcement Report, state securities regulators conducted over 8,800 active investigations in 2024, leading to more than $259 million in fines and restitution.

The data reveal that while scammers are using new technologies like artificial intelligence to dress up their schemes, the goal remains the same: separating victims from their hard-earned money. “The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money,” Nohara said. “Fraudsters are pitching new investments that often have nothing to do with the latest tech developments and instead play on the fear of missing out.”

Commissioner Nohara urges investors to review the following list of threats and check it twice to ensure you do not wind up with a stocking full of coal.

• Affinity or “Pig Butchering” Scheme: A major focus of 2025 enforcement, this long con combines romance and finance. Scammers befriend victims online, build trust over time, and convince them to invest heavily in fake platforms before disappearing with the funds.
• Deepfake Impersonations: Regulators warn that 22% of bad actors are now using AI to generate deepfake videos and cloned voices of celebrities or trusted friends to solicit money or endorse fake products.
• Phantom AI Trading Bots: Criminals sell AI-powered “trading bots” that promise guaranteed returns. These are often black-box scams where the algorithm and the profits do not exist.
• Digital Asset and Crypto Fraud: Consistently a top threat, digital asset scams accounted for hundreds of investigations in 2024. These often involve unregistered securities and vague promises of high returns in the crypto space.
• Fake AI Equity Pitches: Scammers are selling stock in companies that purportedly develop breakthrough AI models. These are often “pump and dump” schemes or sales of equity in companies that are entirely fictitious.
• Social Media Lures: Regulators report that nearly 32% of investigations opened in 2024 involved scams originating on platforms like Facebook and X. If an investment opportunity appears in your newsfeed, approach with extreme caution.
• Short-Form Video Hype: Scammers are increasingly using TikTok and Instagram Reels to post slick, professional-looking videos that tout “get rich quick” schemes to younger demographics.
• Text and WhatsApp Traps: Unsolicited messages on Telegram and WhatsApp are a growing threat. These often start as a “wrong number” text that pivots into a conversation about an exclusive investment opportunity.
• Targeting Older Investors: In 2024, regulators investigated over 1,600 cases involving senior victims. Older investors are specifically targeted with traditional scams involving promissory notes and equities, as well as newer digital frauds.
• Account Takeovers: Using AI and phishing, criminals are seizing control of existing financial or social media accounts to steal funds or solicit money from the victim’s contact list under the guise of an emergency.
• Website and App Spoofing: Using AI to generate professional graphics, scammers create clone websites that look identical to legitimate financial institutions to trick users into handing over login credentials and funds.
• Unregistered Solicitors: Despite professional-looking websites and pitches, many sellers are not licensed. In 2024, regulators opened 944 investigations involving unregistered individuals.

Read the full 2025 North American Securities Administrators Assocation Enforcement Report online.

For more information about protecting your hard-earned money and how to contact authorities, visit the Department of Commerce and Consumer Affairs Business Registration Division Securities website.