From CNBC: 2025-03-15 10:00:01

Consumers lost $5.7 billion to investment scams in 2024, with the number of older adults who lost $100,000 to fraud tripling since 2020. Most victims lost over $9,000 on average. Experts warn of the increasing threat of investment fraud, fueled by AI, cryptocurrency, and organized crime networks in Southeast Asia.

Common investment scams involve criminals building trust with victims before pitching high-return investment opportunities, often in cryptocurrency. Criminals use AI to create convincing deepfakes and exploit the ease of moving funds through cryptocurrency. Organized crime networks operate scam centers in Southeast Asia, exploiting trafficked individuals to carry out fraudulent schemes globally.

To reduce the risk of falling victim to investment fraud, consumers should be cautious of pitches with urgent demands, unusual payment methods like cryptocurrency, and attempts to isolate victims from seeking help. Scammers often use threats and manipulation to pressure victims into making quick decisions without consulting others.

Read more: Investment fraud is on the rise. Here’s how to protect yourself