Washington DFI Warns of AI Investment Scams

WA DFI Press Releases

Published February 2nd, 2026

Detected March 18th, 2026

Summary

The Washington State Department of Financial Institutions (DFI) is warning investors about a rise in AI-powered investment scams, including those using chatbots and deepfakes. The notice urges investors to exercise caution and outlines steps to verify investment professionals and identify fraudulent schemes.

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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 regarding the increasing prevalence of investment scams that leverage artificial intelligence (AI) tools such as chatbots and deepfakes. The notice highlights that these sophisticated AI applications are being used by fraudsters to deceive investors, leading to significant financial losses, which are reported to be in the billions annually. The DFI emphasizes the need for investors to be aware of these evolving threats and to take proactive measures to protect themselves.

Regulated entities and investors are advised to be vigilant and to implement the recommended safeguards. These include verifying the registration of financial service providers through the DFI website, checking for any regulatory warnings or enforcement actions, understanding how AI can be used for manipulation, and reporting any suspicious activity. Investors should be wary of promises of guaranteed high returns with little risk, pressure to act quickly, vague explanations, and the use of personal relationships to build trust. While this is a notice and not a rule, compliance officers should ensure their firms are aware of these scam tactics and reinforce investor education efforts.

What to do next

Review internal investor education materials for AI scam risks.
Reinforce investor awareness of AI-driven fraud tactics.
Ensure compliance teams are aware of DFI and NASAA guidance on AI scams.

Source document (simplified)

Washington DFI Urges Investors to Beware of AI-Powered Investment Scams

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

February 02, 2026 Chatbots and deepfakes are among the AI tools used by fraudsters to rob investors of their hard-earned money Olympia – As artificial intelligence (AI) becomes more sophisticated, the Washington State Department of Financial Institutions (DFI) joins the North American Securities Administrators Association in urging investors to stay vigilant against a growing wave of AI-powered investment scams.

From convincing chatbots to realistic deepfakes, fraudsters are increasingly using AI tools to mislead and manipulate. These scams are becoming harder to detect and more costly to investors. Each year, North American investors lose billions of dollars to fraud, with losses continuing to rise steadily.

“It’s more important than ever for investors to recognize the warning signs of fraud and understand how AI is being used to deceive,” DFI Director Charlie Clark said. “Investors are their own first line of defense. By pausing, thinking critically, and doing your research, you can avoid falling victim to AI-driven scams.”

DFI recommends the following steps to safeguard your investments:

Verify registration: Visit DFI’s website to Verify Financial Services and Industry Licenses in Washington State and confirm that the individual or firm is registered to sell investments.
Check for warnings: Look up alerts or enforcement actions from DFI’s securities division.
Understand the technology: Learn how AI tools work and how they can be used to manipulate. NASAA Investor Alert: Artificial Intelligence (AI) and Investment Fraud
Report suspicious activity: File a complaint to report scams or suspected financial exploitation to DFI, Washington’s Securities regulator.
Be cautious if you encounter:
Promises of guaranteed high returns with little or no risk.
Pressure to act quickly or secrecy around the opportunity.
Unanswered questions or vague explanations.
Use of personal relationships or social networks to build trust.
For more information on AI-related investment scams and how to protect yourself, visit www.dfi.wa.gov/10B. You may also wish to visit DFI’s investment scam tracker to learn more about scams reported in Washington State