New Mexico Securities Division unveils the top investor threats
SANTA FE — The New Mexico Securities Division warns New Mexicans about new, sophisticated schemes bad actors are using to steal money from investors.
Drawing on data from the North American Securities Administrators Association's (NASAA) 2025 Enforcement Report, which compiles investigations conducted in 2024, and its annual survey of top investor threats, the Securities Division has identified several frauds and threats to watch out for this holiday season.
"The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money," said Benjamin Schrope, acting director of the New Mexico Securities Division. "The first step to avoid becoming a victim is to understand what schemes criminals are using."
The Securities Division urges investors to review the following list of threats to protect themselves:
Affinity or "Pig Butchering" schemes: This long-term scam 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.
Deepfake impersonations: 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.
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.
Digital asset and crypto fraud: Consistently a top threat, digital asset scams accounted for hundreds of investigations. These often involve unregistered securities and vague promises of high returns in the crypto space.
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.
Social media lures: Nearly 32% of investigations opened by North American securities regulators involved scams originating on platforms like Facebook and X. If an investment opportunity appears in your newsfeed, approach with extreme caution.
Short-form video hype: Scammers are increasingly using TikTok and Instagram reels to post professional-looking videos that tout "get rich quick" schemes to younger demographics.
Text and 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.
Targeting older investors: Regulators investigated over 1,600 cases throughout North America involving senior victims. Older investors are specifically targeted with traditional scams involving promissory notes and equities, as well as newer digital frauds.
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.
Website and 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.
Unregistered solicitors: Despite professional-looking websites and pitches, many sellers are not licensed. According to the NASAA report, regulators opened 944 investigations involving unregistered individuals.
Find more information about protecting your investments and how to contact authorities by visiting www.rld.nm.gov/securities-division/.
