Crypto Scams and Social Media Schemes Top 2025 Threats
How Firms Can Stay Ahead of NASAA’s Investor Alerts
The North American Securities Administrators Association has released its latest report warning that cryptocurrency scams and social media investment schemes are among the biggest threats to investors in 2025. InvestmentNews notes that the findings not only highlight risks facing retail investors but also place new pressure on broker-dealers and advisers as regulators intensify their focus on supervision of client communications, marketing practices, and crypto related activities.
For firms, the message is clear. Regulators are watching closely to see how companies manage risk and protect clients, and any failure to monitor employee communications, crypto recommendations, or promotional content could leave firms vulnerable to fines, enforcement actions, or worse. The report highlights scams disguised as legitimate investments that are promoted on social media, pump and dump schemes amplified by influencers, unlicensed individuals providing financial advice or products, and misleading marketing materials that fail to meet SEC and FINRA standards for fair and balanced disclosure.
A recurring weakness is the lack of oversight in electronic communications and social media. Conversations about crypto between representatives and clients, marketing posts made by employees, and off channel communications on platforms such as WhatsApp or WeChat often slip past firm controls. Regulators increasingly expect policies and surveillance tools that can provide real-time oversight of these risks, and failure to implement them is no longer seen as acceptable.
GiGCXOs says it has built compliance solutions tailored to these challenges. Its CommSafe360 platform monitors and archives social media, chat, text, and email communications to prevent employees from inadvertently promoting scams. AICompliance360 uses artificial intelligence to review crypto-related and other marketing materials, ensuring compliance with SEC and FINRA standards before they reach investors. FiduciaryGuard360 provides supervisory systems for crypto products to ensure recommendations meet fiduciary and best-interest standards. CyberGuard360 is designed to protect client data and prevent fraudulent account openings that often accompany social media scams, aligning with Reg S-P and Reg S-ID obligations. Monitoring of outside business activities and personal trading helps firms detect when employees are engaged in crypto promotion or unregistered offerings outside of approved channels.
NASAA’s report is a stark reminder that crypto scams and social media schemes are evolving, and firms that fail to adapt risk regulatory scrutiny and investor harm. For compliance officers and executives, the choice is between waiting for a regulator to arrive at their door or proactively building the tools needed to prevent fines and protect clients. GiGCXOs is urging firms to take the latter path and to begin strengthening their compliance frameworks before the next wave of enforcement actions begins.
Contact GiGCXOs now to learn how we help firms like yours navigate these evolving threats, avoid fines, and protect investors.
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Source:: NASAA Article March 6, 2025.