Tennessee - A recent study urges Tennessee residents to stay vigilant against investment fraud in 2025. In 2023, the state witnessed an alarming $54.1 million loss to investment fraud—a staggering 159.4% increase from the $20.9 million lost in 2022. The average victim suffered a devastating financial hit of $126,484.
On a national scale, investment fraud has become the costliest form of fraud in America, as reported by the FBI. In 2023 alone, a record 39,570 victims were defrauded of $4.57 billion, marking a significant rise from 2018 when 3,693 victims reported losses of $253 million.
The study, released by Carlson Law after analyzing FBI Internet Crime Complaint Center data through 2023, highlights the concerning rise in investment scams. A significant portion of this increase is attributed to the growing prevalence of cryptocurrency and AI deepfake videos. In 2023, 86.7% of all money lost to investment scams involved cryptocurrency, totaling $3.96 billion. Scammers frequently use AI-generated videos featuring well-known figures like Elon Musk, Jeff Bezos, and Warren Buffet to promote fake investment opportunities.
Millennials, aged 31 to 45, filed the most investment scam complaints with the FBI, reflecting both their interest in cryptocurrency trading and the increasing sophistication of scammers.
5 Tips for Investors to Avoid Investment Scams:
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Make Crypto Investments Carefully: Avoid responding to messages from unknown sources on social media, email, or text. Use reputable exchanges like Binance or Coinbase.
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Research the Team Behind the Project: Verify the team's identity through reverse searches, LinkedIn profiles, and their involvement in other successful projects.
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Consult an Independent Financial Advisor: Before investing, seek advice from a reputable third-party expert who is not involved in the project.
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Learn to Spot Deepfake Videos: Look for signs such as unnatural blinking, inconsistent skin tone, mouth movements that don't match the audio, and body parts blending into each other.
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Watch for Red Flags: Be cautious of unrealistic returns, high-pressure tactics, and lack of transparency.
