Phoenix, Ariz. —   Don’t let fraudsters play the Grinch with your finances this holiday season. The Arizona Corporation Commission (ACC) and the North American Securities Administrators Association (NASAA) are warning investors that bad actors are preparing to unwrap a new generation of sophisticated schemes. Drawing on data from NASAA’s 2025 Enforcement Report and annual survey of top investor threats, the Commission identified top investors frauds and threats to watch out for this holiday season.

According to NASAA’s 2025 Enforcement Report, state securities regulators conducted over 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 give scam artists new tools to steal your money,” said Chair Kevin Thompson.  “Fraudsters are pitching new investments that often have nothing to do with latest tech developments and instead play on the fear of missing out on the next ‘best thing.’”

The Commission’s Securities Division urges investors to review the following list of threats and to check it twice to avoid ending up with a stocking full of coal.

1. Affinity or "Pig Butchering" Scheme. A major focus of 2025 enforcement, this long-term scheme 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.

2. Deepfake Impersonations. Regulators warn that more than 22 percent 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.

3. 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.

4. Digital Asset & 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.

5. 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.

6. Social Media Lures. Regulators report that nearly 32 percent of investigations opened in 2024 involved scams originating on social media platforms.  If an investment opportunity appears in your newsfeed, approach it with extreme caution.

7. Short-Form Video Hype. Scammers are increasingly using social media to post slick, professional-looking videos that tout "get rich quick" schemes to younger demographics or to those who are financially struggling.

8. 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.

9. 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.

10. 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.

11. 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. A red flag to note is if you hover your computer mouse over the URL and you are re-directed to another website.  

12. Unregistered Solicitors. Despite professional-looking websites and pitches, many sellers are not licensed. In 2024, regulators opened 944 investigations involving unregistered individuals.

With any potential investment, be skeptical and conduct your own due diligence with a trusted third-party. Don’t feel pressured to invest now! You can inquire about the license status and possible disciplinary history of an investment promoter by contacting the Securities Division’s Duty Officer by telephone at 602-542-0662 or by email at SecuritiesDiv@azcc.gov.  Also, you can find more detailed information about being an informed investor and how to avoid fraud by visiting azcc.gov/azinvestor.