New York’s Department of State issued a consumer alert warning that AI-powered investment scams drained more than $8 billion from American victims in 2025. Federal Trade Commission data recorded 144,041 consumers reporting investment-related losses last year, representing a 38% jump from 2024. The median individual loss hit $10,560, higher than any other major fraud category the FTC tracks. Scammers deploy AI tools to clone voices, fabricate celebrity endorsements, and build counterfeit crypto trading platforms. A tech CEO was charged with raising more than $40 million from investors by misrepresenting the company’s AI product capabilities.
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