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California Attorney General Rob Bonta warned on Friday that crypto fraudsters are targeting Gen Z on TikTok, Instagram and Twitch, using AI deepfakes and cloned voices to pose as trusted figures. Americans lost $11.4 billion to crypto scams in 2025, more than half of all internet fraud losses.
“These fraudsters aren’t just targeting elders — we’re seeing a sharp rise in reports of Gen Z being preyed upon on platforms like Twitch, TikTok, and Instagram,” Bonta said in a statement.
The warning comes as online platforms continue to serve as spaces for social interaction, entertainment and financial discussions. Fraudsters can exploit these environments to approach potential victims, establish trust and promote seemingly attractive investment opportunities.
Crypto scammers are also adapting their methods to exploit advances in artificial intelligence. Rather than relying solely on suspicious emails or unsolicited messages, criminals can use convincing digital impersonations to make fraudulent offers appear more authentic.
The California warning underscores the importance of verifying investment claims independently, particularly when a financial opportunity originates from a social media account or an online contact whose identity has not been confirmed.
One of the tactics identified by California authorities involves the use of artificial intelligence, deepfake videos and cloned voices to impersonate celebrities, relatives and other trusted figures.
These tools can make fraudulent messages and promotional content more convincing by creating the impression that a familiar person is endorsing an investment or requesting financial assistance. Victims may be more willing to act when they believe an offer comes from someone they recognise or trust.
However, an apparently authentic video, voice recording or social media profile does not establish that an investment opportunity is legitimate. Criminals can manipulate digital content or impersonate real individuals without their knowledge or permission.
Another common scheme involves building relationships with victims over time before introducing them to fraudulent cryptocurrency investment platforms.
In these cases, scammers may initially communicate with victims through social media or messaging applications. After establishing trust, they encourage the individuals to deposit cryptocurrency into a platform that appears to offer trading services or investment opportunities.
The platform may display fabricated account balances and profits to convince victims that their investments are performing well. These apparent gains can encourage them to deposit increasingly large sums.
The fraud often becomes apparent when victims attempt to withdraw their funds. They may discover that withdrawals are blocked or that the platform demands additional payments before releasing their money.
Such schemes exploit both financial ambition and personal trust. By presenting false evidence of investment success, crypto scammers can persuade victims to continue depositing funds even when the supposed profits have no legitimate financial basis.
California authorities have urged consumers to be particularly cautious about guaranteed returns, unsolicited investment advice and requests to make payments in cryptocurrency.
The California Department of Justice has warned that cryptocurrency can allow criminals to move substantial sums of money remotely within minutes, creating challenges for investigators attempting to trace stolen funds or reverse fraudulent transactions.
Unlike conventional payments involving cash or gift cards, cryptocurrency transfers are generally recorded on public blockchains, depending on the asset and network used. Although investigators may be able to analyse these records, identifying the people controlling particular wallets and recovering the funds can be difficult.
Many cryptocurrency transactions cannot simply be reversed by contacting a payment provider. Once a transfer has been confirmed on a blockchain, the recipient may be able to move the assets through additional wallets or services, complicating recovery efforts.
This does not mean cryptocurrency transactions are universally untraceable. Blockchain analysis can help investigators follow the movement of funds, but tracing assets does not necessarily guarantee that authorities can identify the perpetrators or return the money to victims.
The scale of reported losses illustrates why prevention remains important. With $11.4 billion in reported cryptocurrency scam losses in 2025, the figures cited by California authorities point to a substantial financial burden associated with online fraud.
The warning also highlights how digital impersonation and relationship-based manipulation can operate alongside cryptocurrency transfers. The technology used to initiate a scam may change, but the underlying objective remains the same: persuading victims to surrender money or digital assets under false pretences.
Alongside its public warning, California has introduced a legal measure intended to improve the prospects of recovering cryptocurrency seized during investigations.
According to the report published by Patch, a new California law sponsored by Bonta allows law enforcement agencies to seek court approval to return seized cryptocurrency to fraud victims, including in cases where the alleged perpetrators are beyond the reach of US prosecutors.
The measure provides a potential route for returning recovered assets to victims through the legal system. However, it does not guarantee compensation in every case, and recovery may depend on whether authorities locate and seize assets that can be returned.
Bonta’s office has also outlined practical steps consumers can take to reduce their exposure to cryptocurrency fraud.
Californians are advised to avoid cryptocurrency ATMs when responding to suspicious payment requests, remain cautious about guaranteed investment returns and reject unsolicited financial advice from unknown individuals.
The office also recommends keeping social media profiles private, independently verifying unexpected investment messages purportedly sent by friends and avoiding the disclosure of financial information to strangers online.
Consumers should be particularly wary when an online contact pressures them to act quickly, requests cryptocurrency transfers or directs them to an unfamiliar investment website. Independently checking a platform’s legitimacy and contacting acquaintances through a separate, trusted communication channel can help expose impersonation attempts.
People who believe they have encountered cryptocurrency fraud can report suspected scams to the California Department of Justice. The office also provides fraud-prevention information through its official website at oag.ca.gov/crypto.
The warning serves as a reminder that cryptocurrency fraud is not confined to one age group. As artificial intelligence and social media give criminals additional ways to impersonate trusted people and promote false investment opportunities, consumers must approach unsolicited financial offers with caution.
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