OLYMPIA, WA — State and national securities regulators are warning investors to remain cautious as scammers increasingly rely on sophisticated technology, including artificial intelligence, to carry out investment fraud.
The Washington State Department of Financial Institutions (DFI), along with the North American Securities Administrators Association (NASAA), released a list of the top investor fraud threats expected to impact consumers in 2026, based on findings from NASAA’s 2025 Enforcement Report.
According to the report, state securities regulators conducted more than 8,800 active investigations nationwide in 2024, resulting in more than $259 million in fines and restitution. Regulators say while fraudsters are increasingly using AI-generated videos, voice cloning, and professional-looking websites, the goal remains unchanged — separating victims from their money.
“Fraudsters are pitching new investments that often have nothing to do with the latest tech developments and instead play on fear of missing out,” DFI Director Charlie Clark said in a statement.
Officials say scams frequently originate on social media platforms, messaging apps, and short-form video services, with older investors continuing to be among the most targeted groups. Regulators also warn that many fraudulent investment offers come from unregistered individuals posing as licensed professionals.
Top investor fraud threats identified for 2026
| # | Threat | Description |
|---|---|---|
| 1 | Affinity or “Pig Butchering” Schemes | Long-term scams combining online relationships with fake investment platforms that end with victims losing their funds. |
| 2 | Deepfake Impersonations | AI-generated videos or cloned voices used to impersonate celebrities, officials, or trusted contacts. |
| 3 | Phantom AI Trading Bots | Fraudulent “AI-powered” trading bots promising guaranteed returns with no legitimate technology behind them. |
| 4 | Digital Asset & Crypto Fraud | Scams involving unregistered securities, fake crypto platforms, and unrealistic return promises. |
| 5 | Fake AI Equity Pitches | Sales of stock in companies claiming to develop advanced AI technology that may not exist. |
| 6 | Social Media Investment Lures | Investment offers that originate on platforms such as Facebook, Instagram, or X. |
| 7 | Short-Form Video Hype | Slick videos on TikTok or Instagram promoting rapid wealth-building schemes. |
| 8 | Text & Messaging App Traps | Unsolicited messages through SMS, WhatsApp, or Telegram that pivot into investment pitches. |
| 9 | Targeting Older Investors | Scams disproportionately aimed at seniors, including promissory notes and digital fraud. |
| 10 | Account Takeovers | Fraudsters gaining control of financial or social media accounts to steal funds or solicit money. |
| 11 | Website & App Spoofing | Fake websites or apps designed to resemble legitimate financial institutions. |
| 12 | Unregistered Solicitors | Individuals offering investments without proper licensing or registration. |
DFI encourages investors to independently verify licensing, be wary of unsolicited investment opportunities, and report suspected fraud. Additional information on identifying, preventing, and reporting investment scams in Washington is available through the agency’s consumer protection resources.
