Investor Fraud Prevention: 12 Top Threats Identified by NASAA

WA DFI Press Releases

Published January 5th, 2026

Detected March 18th, 2026

Summary

The Washington State Department of Financial Institutions (DFI) and the North American Securities Administrators Association (NASAA) have identified 12 top investor threats for 2026, including AI-driven scams and digital asset fraud. State securities regulators reported over 8,800 investigations and $259 million in fines in 2024.

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What changed

The Washington State Department of Financial Institutions (DFI), in conjunction with the North American Securities Administrators Association (NASAA), has issued a warning to investors identifying 12 top threats for 2026. These threats include sophisticated schemes leveraging AI, such as deepfake impersonations and phantom AI trading bots, alongside persistent digital asset and crypto fraud, affinity scams, and social media lures. NASAA's 2025 Enforcement Report highlighted over 8,800 investigations in 2024, resulting in $259 million in fines and restitution, underscoring the evolving tactics of fraudsters.

Regulated entities, particularly those in the financial advisory and public company sectors, should be aware of these emerging threats to better advise their clients and protect against fraudulent solicitations. Investors are urged to exercise extreme caution with unsolicited investment opportunities, especially those originating on social media or through text messages, and to be wary of promises of guaranteed high returns. The DFI encourages investors to incorporate fraud prevention into their New Year's resolutions to avoid significant financial losses.

What to do next

Review the list of 12 investor threats identified by NASAA.
Educate clients and internal staff on emerging fraud schemes, particularly those involving AI and digital assets.
Enhance due diligence processes for new investment opportunities and platforms.

Penalties

Monetary fines and restitution totaling over $259 million were reported by state securities regulators in 2024.

Source document (simplified)

A New Year Means A New Resolution: Fraud Prevention – 12 Top Investor Threats Identified By North American Securities Administrators Association

FOR IMMEDIATE RELEASE FROM
THE WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS

Contact
Lyn Peters, Director of Communications
PH (360) 349-8501 or CommunicationDir@dfi.wa.gov

January 05, 2026 WA DFI reminds investors to learn how to identify, prevent and report investment fraud Olympia – The Washington State Department of Financial Institutions (DFI) and the North American Securities Administrators Association (NASAA) are warning investors that bad actors are using a new generation of sophisticated schemes in this New Year. Drawing on data from NASAA’s 2025 Enforcement Report and annual survey of top investor threats, DFI and NASAA have identified top investors frauds and threats to watch out for in 2026.

According to NASAA’s 2025 Enforcement Report, state securities regulators conducted more than 8,800 active investigations in 2024, leading to more than $259 million in monetary fines and restitution. The data reveals that while scammers are using new technologies like Artificial Intelligence (AI) 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,” DFI Director Charlie Clark said. “Fraudsters are pitching new investments that often have nothing to do with latest tech developments and instead play on fear of missing out.”

DFI urges investors to review the following list of threats and add to their New Year Resolutions to make sure you don’t start the New Year with what could be devastating financial losses.

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 22.2% 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 & Crypto Fraud Consistently a top threat, digital asset scams accounted for hundreds of investigations in 2024. These often involve unregistered securities, vague promises of high returns, and fictitious trading apps and websites 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, Instagram, 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 & 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 more than 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, fraudsters 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 & 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. Learn more about investment fraud happening in Washington State by visiting DFI’s Investment Scam Tracker. Find information about how to identify, prevent, and report fraud at www.dfi.wa.gov/10B.