Investment Scammers Offer Tricks, Not Treats Don’t be fooled by their masks and disguises this Halloween Season

Phoenix - As Halloween approaches, the Arizona Corporation Commission is warning the public to stay alert for phantom offers from scammers impersonating government officials, law enforcement, or financial experts.

According to a 2025 report from the North American Securities Administrators Association (NASAA), scams involving digital assets, social media, and impersonation are among the top threats this year with artificial intelligence (AI) making it easier for criminals to create convincing fakes. Fraudsters can now clone voices, generate fake videos, and impersonate trusted individuals or organizations. This all results in tricking victims into sharing personal information, transferring money, or granting remote access to devices. These scams are increasingly polished, personalized and difficult to detect until after significant financial losses occur.

Even more concerning are in-person scams. In a scheme known as "pig butchering," criminals build trust with victims over time before luring them in with a fraudulent investment. Other so-called gold traders or bankers who contact victims online under false pretenses, build rapport then arrive face-to-face to collect cash, gold, or gift cards only to later "ghost" their victims.

The Commission's Securities Division offers the following tips to scare off a potential scammer:

• Investigate before you invest: Do a simple online search for a prior criminal history. Ask the promoter for their license or registration number. Verify that information with the Commission's Duty Officer at 602-542-0662 or [email protected].
• Be skeptical of unsolicited offers: Scammers cloak themselves in legitimacy with fancy websites, professional brochures, often using social media or messaging apps to lure victims. If you did not initiate the message, beware. Even small interactions can have serious consequences.
• Don't rush: High-pressure tactics are a red flag of a potential scam. Take your time and ask yourself, "Is it fraud?" Discuss the investment with a trusted, third-party contact who is knowledgeable about investing.
• Report suspicious activity: Contact the Duty Officer of the Commission's Securities Division by telephone or email to provide details about the potential investment and promoter or to file a complaint if you think you have been defrauded.

"Investment scams can be lurking in your text messages, phone calls, or social media accounts," said Chair Kevin Thompson. "This report reinforces how fraudulent schemes are growing more complex with technology advancements. This in turn requires our state Securities investigators and regulators to become more advanced in their understanding of these emerging and rapidly evolving technologies technology to unravel these schemes, while the Commission continues to promote investor education to Arizona residents to assist investors in protecting themselves from scammers."

Visit azcc.gov/azinvestor to learn more about wise investing and fraud prevention.