Investment and crypto scams are the top scam text in 47 US states, McAfee says, as losses hit $7.9 billion

Investment scam messages have become the most common type of fraudulent text reported across 47 US states, according to a recent analysis by cybersecurity company McAfee, highlighting how criminals are increasingly using unsolicited messages, social engineering and cryptocurrency-related offers to target consumers.

The analysis, published by Money on October 17, 2026, found that Michigan, Maine and North Dakota were the only states where investment and cryptocurrency scams did not rank as the leading category of fraudulent text messages.

The findings come as financial fraud continues to impose substantial costs on American consumers. Data from the Federal Trade Commission (FTC) cited in the report show that Americans reported losing more than $7.9 billion to investment scams in 2025, making the category the most financially damaging type of fraud by reported losses.

Unlike traditional fraud attempts that immediately solicit money, many investment scam campaigns begin with seemingly harmless conversations. Fraudsters may pose as financial experts, offer access to exclusive investment groups or contact individuals under the pretense of having sent a message to the wrong number.

Over time, these interactions shift toward financial opportunities, often accompanied by promises of exceptional returns and pressure to act quickly.

Abhishek Karnik, head of threat research at McAfee, said scammers frequently move conversations away from ordinary text messaging to platforms where their activities may be harder to monitor.

“It usually starts with a simple text message,” Karnik said.

The pattern illustrates how fraudsters exploit personal interactions to establish trust before introducing financial requests, making it increasingly difficult for recipients to distinguish legitimate opportunities from carefully constructed deception.

Investment scam tactics exploit trust and cryptocurrency payments

The widespread use of investment scam messages reflects the combination of social engineering techniques and payment methods that can make stolen funds difficult to recover.

Scammers frequently encourage victims to transfer money through cryptocurrency, gift cards or debit-related transactions. These methods can complicate investigations and reduce the likelihood that victims will recover their funds once a transfer has been completed.

Karnik warned that payments made through certain channels can leave victims with limited options for recovering their money.

“Any time you use crypto, any time you use a gift card [for] payment … or [do] some sort of a debit-related transaction, the chances of you recovering that money is almost nil,” he said.

Cryptocurrency transactions, in particular, can create additional challenges when funds move across multiple wallets or jurisdictions. Although some blockchain transactions can be traced, identifying the individuals behind wallet addresses and recovering transferred assets can be difficult.

The financial consequences of these schemes are significant. According to the FTC figures cited by Money, investment fraud generated more than $7.9 billion in reported losses during 2025, with the median loss exceeding $10,000.

Separate findings from the Better Business Bureau (BBB) also point to the severity of the problem. Investment and cryptocurrency scams were the riskiest scam category reported to the organization in 2025, with more than 77% of people targeted reporting financial losses.

These figures suggest that investment fraud is not simply a problem of unwanted messages. It can develop into substantial financial harm when victims believe they are participating in legitimate investment opportunities.

Artificial intelligence is adding another dimension to the threat. Criminals can use AI tools to generate persuasive messages in multiple languages, adapt their wording to different audiences and produce large volumes of communications without manually composing each one.

This allows fraudsters to scale campaigns across different regions while tailoring their approaches to local circumstances and potential victims.

For consumers, the danger is that an investment scam may appear increasingly convincing even when the underlying offer is fraudulent. Professional language, personalized messages and sustained conversations are not proof that an investment opportunity is legitimate.

Alabama, Georgia and Mississippi report high scam text volumes

Although investment scam messages dominate in most states, the volume of suspicious texts varies across the United States.

McAfee’s analysis identified Alabama as the state with the highest number of scam text messages detected per device. Georgia ranked second, followed by Mississippi.

Other federal data indicate that some states experiencing substantial volumes of suspicious messages also report high levels of consumer fraud more broadly.

During the first half of 2026, Nevada and Georgia recorded particularly high rates of fraud reports per capita in FTC data. Nevada and Georgia had 604 and 547 reports per 100,000 residents, respectively, according to the figures cited in the report.

However, the two datasets measure different aspects of fraudulent activity. McAfee tracks scam messages detected on devices, while the FTC figures cover consumer fraud reports across multiple categories.

Consequently, the figures do not establish that residents receiving the most suspicious texts are necessarily the people most likely to lose money. They instead provide separate indicators of the scale of fraudulent activity affecting consumers in different parts of the country.

The reasons some states receive more scam messages than others are also not always clear.

Karnik explained that fraudsters may focus on particular populations or regions depending on the information available to them. Criminals working with stolen contact databases, for example, could concentrate their campaigns on people whose telephone numbers are associated with a particular state.

Ron Kerbs, founder and chief executive of AI voice-fraud detection company Kidas, said scammers also use regional familiarity to make unsolicited communications appear more credible.

“Scammers — especially in telecom — like to call you with a number from the same region that you’re at,” Kerbs said.

He added that criminals may exploit local events, including elections and sporting competitions, to make their communications more relevant to potential targets.

These tactics demonstrate how fraudsters can adapt their approaches to their intended audiences. A message that appears connected to a familiar location or current event may attract attention more easily than an obviously suspicious communication from an unfamiliar source.

Nevertheless, the state-level differences in scam activity do not change the broader finding: investment and cryptocurrency fraud remain widespread threats to consumers across the country.

How consumers can identify an investment scam

As investment scam campaigns become more sophisticated, cybersecurity and fraud experts recommend independently verifying unexpected financial offers rather than relying on how convincing a message appears.

Consumers who receive messages from people claiming to represent banks, investment firms or other financial institutions should end the conversation and verify the sender through an independently obtained contact channel.

For example, someone receiving an unexpected message from a bank can call the telephone number printed on their bank card or an official account statement instead of using a number or link supplied in the message.

Promises of unusually high or guaranteed investment returns should also raise concerns. Legitimate investments carry risks, and claims that substantial profits are certain can indicate an attempt to manipulate potential investors.

Consumers should avoid clicking links in unsolicited messages, sharing sensitive financial information with unverified contacts or transferring money because someone insists that an opportunity will disappear if they delay.

Another important warning sign is a relationship that gradually shifts toward financial requests.

Some fraudsters spend days or weeks building rapport with their targets before introducing investment opportunities. The initial conversation may involve ordinary greetings, personal interests or an apparent mistake involving a telephone number. Only later does the person begin discussing cryptocurrency trading, exclusive financial groups or opportunities to generate substantial returns.

The gradual approach can make victims less suspicious because the investment pitch arrives after a degree of familiarity has developed.

Karnik advised consumers to watch for the sequence of warning signs, particularly when an unfamiliar contact moves a conversation to a private messaging platform and begins encouraging a quick investment.

“Eventually, it all boils down to making a payment or losing money,” he said.

The warning is particularly relevant as artificial intelligence enables fraudsters to personalize communications and operate campaigns at greater scale. A message that uses natural language, references local events or appears to come from someone with financial expertise should not be treated as trustworthy without independent verification.

Consumers should also remember that legitimate investment professionals do not need to pressure clients into making immediate decisions or rely on secrecy to secure a payment.

McAfee’s findings underscore the importance of treating unexpected investment pitches with caution, particularly when they originate through text messages or move quickly to encrypted messaging platforms.

With investment-related fraud ranking as the leading category of scam texts in 47 states, recognizing suspicious behavior before money changes hands remains one of the most effective ways consumers can reduce their exposure to financial losses.