Threat Library

AI-era threat

AI-scaled romance and investment scams

Severity: High impactAI's role: Attackers use AIHome

Published

TL;DR

Organized scam operations now use AI to translate, script and run many online 'relationships' at once, usually steering people toward fake crypto investments. Investment fraud was the costliest crime reported to the FBI in 2025 at $8.6 billion, and people 60 and older reported $3.5 billion of it.1 Being targeted says nothing about your intelligence; these are professional operations. The rule that holds: never send money or crypto to someone you have only met online, and talk it over with someone you trust first.

What it is

These scams build trust over weeks or months, as a romance, a friendship or a mentor relationship, then turn that trust into 'investments' on a fake trading platform that shows invented profits.1 INTERPOL calls the romance-plus-crypto version romance baiting; you may also see the slang name 'pig butchering' in news and government notices.23

Many run from scam compounds in Southeast Asia, where trafficked workers are often forced to do the typing.14 In October 2025 the Justice Department charged the alleged head of one Cambodian network and moved to seize about 127,271 bitcoin, then worth about $15 billion;5 in January 2026 Cambodia arrested him and sent him to China to face charges there.6

AI doesn't change the playbook. It lets each operator handle more conversations in fluent language, with translation, scripted replies and fake profiles on tap.78

By the numbers

  • $8.6 billion1

    Investment fraud losses reported to the FBI in 2025, the largest of any crime type, from 72,984 complaints.

    FBI Internet Crime Complaint Center (IC3), p.7 (complaint counts) and p.8 (losses)

  • $7.2 billion1

    The cryptocurrency share of those losses. The FBI says crypto investment fraud is largely run by Southeast Asian crime groups using trafficked people as forced labor.

    FBI Internet Crime Complaint Center (IC3), p.11 and p.53

  • $929 million1

    Romance and confidence fraud losses reported to the FBI in 2025, from 23,159 complaints.

    FBI Internet Crime Complaint Center (IC3), p.7 and p.8

  • $632 million1

    Investment fraud losses in 2025 complaints that mentioned AI. Total investment losses reached $8.6 billion, and the FBI notes that many victims don't realize how much AI was involved.

    FBI Internet Crime Complaint Center (IC3), p.40 and p.42

  • At least $10 billion3

    A US government estimate of what Americans lost to Southeast Asia-based scam operations in 2024, up 66% from the year before.

    U.S. Department of the Treasury, Press release, section 'Over $16 billion lost to online scams'

  • Nearly 60%9

    Share of people who reported losing money to a romance scam to the FTC in 2025 who said it started on social media.

    Federal Trade Commission, Footnote 5

  • 78%1

    Share of the 3,780 crypto investment fraud victims the FBI contacted in 2025 who didn't know they were being scammed.

    FBI Internet Crime Complaint Center (IC3), p.20, Operation Level Up

  • $1.4 billion1

    Losses in 10,516 complaints about 'recovery' scams that target people who already lost money; the total can include the earlier loss.

    FBI Internet Crime Complaint Center (IC3), p.53

What it looks like

How this plays out, based on documented cases.

At home

The wrong-number text

A friendly text arrives for someone else, you reply to say so, and the sender keeps chatting. Within days you're invited to a WhatsApp 'investment club' where half a dozen members swap tips and celebrate wins. OpenAI documented one Cambodia-linked operation that bulk-texted US phone numbers with invitations to groups like this, where every 'investor' was played by the scammers and the chatter was translated from Chinese in one block.7 The club's mentor points you to a trading app that shows steady profits, and when you try to withdraw, you're told to pay taxes or fees first.1

At home

The attentive new friend

After losing her husband, a retired teacher starts talking with a kind, attentive man she met on social media. His messages arrive at all hours in warm, perfect English, and he never quite manages a long video call. Anthropic found a Telegram service with more than 10,000 monthly users offering AI tools to write emotionally persuasive replies for romance scams, and UNODC, the UN's crime agency, reports scam centers using deepfake filters on video calls.104 Weeks later he mentions his crypto gains and offers to show her how. The FTC finds older adults are 48% more likely than younger adults to report losing money to a romance scam, and people 60 and older reported $584 million in romance and confidence losses to the FBI in 2025.111

At home

The celebrity-backed investment club

An ad on social media shows a famous investor or chief executive in a video, inviting you to a private stock or crypto 'club'. The FBI warns that these clubs use AI-generated video and voices of celebrities and trusted figures so the pitch looks endorsed.1 Inside the group, an 'analyst' shares picks that seem to work at first. In 2025, people reported $1.1 billion lost to investment scams that began on social media.9

At home

The 'law firm' that offers to help

Months after losing savings to a fake platform, a man hears from a law firm that says he's on a government list of scam victims. It knows the exact amounts and dates of his transfers, claims to work with federal agencies, and asks for a fee in crypto or gift cards to release his recovered money.12 The FBI warns these firms are fake and that the government does not charge for law enforcement help.12 Recovery-scam complaints reported $1.4 billion in losses in 2025, a total that can include the original scam.1

How it gets in

  • A cold start that looks harmless: a wrong-number text, a social media message, a dating match or an ad, followed quickly by a move to a private messaging app.1
  • Social media above all: in 2025, $2.1 billion in losses reported to the FTC began on social media, more than any other way scammers made contact.9
  • AI translation and scripts: scam centers use large language models to translate and write messages, and chatbots to screen and groom targets at volume.482
  • Machines that can win trust: in one small week-long study (22 volunteers), participants trusted an AI chat partner more than human ones, and 46% followed its harmless request versus 18% for the humans.13
  • Fake faces and proof: AI-generated profile photos, plus short videos or video calls that seem to prove a real person is there.14
  • Borrowed authority: AI-generated videos of celebrities, chief executives or other trusted figures promoting investment clubs.1
  • A fake platform: a professional-looking app or website that shows growing profits, offers loans to invest more, and demands fees before any withdrawal.1
  • A second wave: 'recovery' firms and fake officials who contact people who already lost money.1215

What stops it

Prevention: the habits and settings that break this attack.

  • Keep one rule: no money for people you've only met online

    Don't send money, gift cards or crypto to anyone you know only from the internet or the phone, however long you've been talking. That is the FBI's own advice for AI-enabled scams.14

  • Talk it through with someone you trust

    Before acting on any investment idea that came from an online contact, describe it out loud to a friend, a relative or your bank. Scammers push secrecy because a second opinion breaks the spell, and asking is a strength, not an admission.

  • Check the person and the platform yourself

    Search the app's or firm's name with the word 'scam', and look up any broker or adviser on BrokerCheck, the free lookup run by the Financial Industry Regulatory Authority (FINRA), or with your state securities regulator. Run a reverse image search on profile photos. If the only way to reach a platform is a link from your new contact, treat it as fake.

  • Treat 'pay to withdraw' as the end of the story

    A real investment doesn't make you pay taxes or fees upfront to get your own money out. The FBI describes that demand as the scammers' last attempt to take more before they disappear.1

  • Name a trusted contact on financial accounts

    Brokerage firms ask for a trusted contact they may call if they can't reach you or suspect financial exploitation. That person can't trade or see your balance, so it adds a safety net without giving up control.16

  • Assume a voice or a face can be faked

    A video call or voice note no longer proves a person is who they say.14 Agree on a family safe word and call back on numbers you already have.

  • Help a parent with curiosity, not blame

    If you're worried about a parent's new online friend, ask open questions about how they met and whether money or investing has come up. Offer to look at the 'platform' together, and keep the door open so they keep talking to you.

Response, not prevention

If it already happened

Work through these in order. Moving quickly limits the damage, and there is no shame in reporting it.

  1. Stop sending money, and save everything

    Don't confront or warn the scammer. Save the chats, profile names, phone numbers, website and app addresses, wallet addresses and transaction IDs; reports and any recovery depend on them.

  2. Call your bank or crypto exchange right away

    Tell them the payment was fraud and ask them to stop or reverse it. Crypto has fewer protections than cards or bank transfers, so speed matters.17

  3. Report to the FBI and the FTC

    File at ic3.gov with full transaction details, whatever the amount, and at ReportFraud.ftc.gov.117 Also report the profile to the app or social network where it started.

  4. Older adults can get help filing

    The Justice Department's National Elder Fraud Hotline, 833-FRAUD-11 (833-372-8311), helps people 60 and older and their families file a report.18

  5. Say no to anyone offering recovery for a fee

    The IC3, the FBI's Internet Crime Complaint Center, never contacts victims directly by phone, email or social media and never charges to recover money.15 Law firms or 'agents' who know your losses and ask for fees are running a second scam.12

  6. Secure your accounts and identity

    If you shared passwords, ID documents or remote access to your computer, change those passwords, turn on multi-factor authentication (MFA), and consider freezing your credit with the three credit bureaus.

  7. Be kind to yourself, and reach out

    These scams are run by organized crime with scripts and AI, and in 2025 most of the victims the FBI contacted had no idea they were being scammed.1 Tell someone you trust. If shame or despair feels overwhelming, call or text 988 at any hour.19

Common questions

Why don't you call these 'pig butchering' scams?

That slang name likens the people targeted to animals being fattened for slaughter. We use plainer terms, romance baiting or relationship investment scams, because the people harmed deserve better than the criminals' vocabulary.

How can I tell if I'm chatting with AI?

Often you can't, and you don't need to. Watch the behavior instead: someone you've never met in person who moves you to a private app, avoids live video, and sooner or later brings up money or investing.

My parent is in one of these relationships and won't listen. What can I do?

Stay close and stay calm, because shame pushes people to hide transfers. Ask questions, offer to review the 'platform' together, and talk with their bank or brokerage about alerts and a trusted contact. Our guide to protecting an older relative walks through the conversation.

Can stolen crypto ever be recovered?

Sometimes. Law enforcement does freeze and seize scam funds, which is why a fast, detailed report at ic3.gov matters. No legitimate agency or firm will ask you to pay upfront to get it back.

Is it ever safe to invest with someone I met online?

Not through them. If you want to invest, go to a registered firm you find yourself, never through an app, link or contact that came from a new online acquaintance.

Sources

Every figure on this page links to where it came from. We favor government, standards, and methodology-backed sources, and we take no money from anyone we cite.

  1. 1
    2025 IC3 Annual Report (Internet Crime Report) · FBI Internet Crime Complaint Center (IC3) · April 2026
    Government · accessed October 23, 2026
  2. 2
    Global Financial Fraud Threat Assessment, Second Edition · INTERPOL · March 16, 2026
    Government · accessed October 23, 2026
  3. 3
    U.S. and U.K. Take Largest Action Ever Targeting Cybercriminal Networks in Southeast Asia · U.S. Department of the Treasury · October 14, 2025
    Government · accessed October 23, 2026
  4. 4
    Inflection Point: Global Implications of Scam Centres, Underground Banking and Illicit Online Marketplaces in Southeast Asia · United Nations Office on Drugs and Crime (UNODC) · April 21, 2025
    Government · accessed October 23, 2026
  5. 5
    Chairman of Prince Group indicted for operating Cambodian forced labor scam compounds engaged in cryptocurrency fraud · U.S. Department of Justice, Office of Public Affairs · October 14, 2025
    Government · accessed October 23, 2026
  6. 6
    Cambodia Extradites Chair of Alleged 'Criminal' Conglomerate to China · Organized Crime and Corruption Reporting Project (OCCRP) · January 7, 2026
    Journalism · accessed October 23, 2026
  7. 7
    Disrupting malicious uses of AI: an update (October 2025) · OpenAI · October 2025
    Incident report · accessed October 23, 2026
  8. 8
    IOCTA 2026: The evolving threat landscape. How encryption, proxies and AI are expanding cybercrime · Europol · April 28, 2026
    Government · accessed October 23, 2026
  9. 9
    Reported losses to scams on social media eight times higher than in 2020 (Consumer Protection Data Spotlight) · Federal Trade Commission · April 27, 2026
    Government · accessed October 23, 2026
  10. 10
    Threat Intelligence Report: August 2025 · Anthropic · August 27, 2025
    Incident report · accessed October 23, 2026
  11. 11
    Protecting Older Consumers 2025-2026: A Report of the Federal Trade Commission · Federal Trade Commission (FTC) · October 19, 2026
    Government · accessed October 23, 2026
  12. 12
    Fictitious Law Firms Targeting Cryptocurrency Scam Victims Combine Multiple Exploitation Tactics While Offering to Recover Funds (I-081325-PSA) · FBI Internet Crime Complaint Center (IC3) · August 13, 2025
    Government · accessed October 23, 2026
  13. 13
    Love, Lies, and Language Models: Investigating AI's Role in Romance-Baiting Scams · Gressel et al., USENIX Security Symposium 2026 (arXiv:2512.16280) · December 18, 2025
    Research · accessed October 23, 2026
  14. 14
    Criminals Use Generative Artificial Intelligence to Facilitate Financial Fraud (I-120324-PSA) · FBI Internet Crime Complaint Center (IC3) · December 3, 2024
    Government · accessed October 23, 2026
  15. 15
    FBI Warns of Scammers Impersonating the IC3 (I-041825-PSA) · FBI Internet Crime Complaint Center (IC3) · April 18, 2025
    Government · accessed October 23, 2026
  16. 16
    Investor Bulletin: Why You Should Consider Adding a Trusted Contact to Your Account · FINRA (Financial Industry Regulatory Authority) · August 25, 2025
    Law or regulation · accessed October 23, 2026
  17. 17
    What To Do if You Were Scammed · Federal Trade Commission (FTC), Consumer Advice · June 2026
    Government · accessed October 23, 2026
  18. 18
    National Elder Fraud Hotline · U.S. Department of Justice, Office for Victims of Crime (OVC)
    Government · accessed October 23, 2026
  19. 19
    988 Suicide & Crisis Lifeline · Substance Abuse and Mental Health Services Administration (SAMHSA) · September 26, 2025
    Government · accessed October 23, 2026