Scammers are increasingly using advanced technology to target residents in Hawaii, particularly during the busy holiday shopping season. According to the state’s Department of Commerce and Consumer Affairs (DCCA), a surge of AI-driven investment schemes is exploiting social media and cloned websites to impersonate trusted brands and acquaintances. These scams range from romance-driven “pig butchering” schemes to sophisticated deepfake impersonations, aiming to defraud both older residents and younger individuals engaged with short-form video content.
The DCCA’s Business Registration Division has reported that these scams are moving swiftly and appearing highly polished, making them particularly deceptive. In a recent statement, Ty Y. Nohara, DCCA Commissioner, emphasized the heightened risks posed by these developments: “The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money.” State officials are urging residents to treat unsolicited investment pitches with skepticism.
Current Scams on the Radar
Regulatory agencies have outlined a series of concerning trends in their latest annual threat assessment, published by the North American Securities Administrators Association (NASAA). This report identifies a dozen specific hazards, including affinity fraud, deepfake impersonations, and phantom AI trading bots. In 2024 alone, state securities regulators initiated over 8,800 active investigations and reported more than $259 million in fines and restitution related to investment fraud.
The NASAA report reveals that approximately 22.2% of active investigations involved deepfake technology, while nearly 32% began on social media platforms. This combination illustrates the potential danger of flashy ads that can mislead unsuspecting consumers.
Impact on Local Communities
Hawaii’s communities are already experiencing significant financial losses due to these scams. Reports indicate that residents, particularly the elderly, have fallen victim to cryptocurrency-related frauds, with local complaints numbering in the hundreds and losses totaling millions. In 2024, regulators documented over 1,600 cases involving older victims nationwide, highlighting a troubling trend.
Community groups and lawmakers have raised alarms about the proliferation of cash-to-crypto kiosks and impersonation schemes. These platforms can convert hard-earned cash into cryptocurrency, making it difficult for victims to recover their funds.
Protecting Yourself Against Scams
To safeguard against these fraudulent activities, officials recommend several precautionary measures. Potential victims should slow down if pressured to act immediately and avoid sending money via gift cards or wire transfers for investments. They should also verify identities using official contact numbers rather than relying on unsolicited communications.
Residents can confirm whether an investment seller is licensed through the DCCA Business Registration Division. Complaints can be filed through the securities enforcement portal or by contacting the Business Registration Division at (808) 586-2744. For statewide fraud reporting, individuals can call 58-SCAMS or 1-877-HI-SCAMS. Families are encouraged to discuss common warning signs with older relatives and to keep records of suspicious communications, which could be vital for investigations.
Regulatory Response and Future Actions
In response to the growing threat of investment fraud, state regulators are taking action beyond merely issuing warnings. NASAA reported hundreds of enforcement actions and numerous criminal referrals linked to investment scams in 2024. The agency launched 944 investigations specifically targeting unregistered solicitors. Depending on the findings, these cases may lead to civil penalties, restitution, and criminal charges.
As holiday spending continues and online investment pitches proliferate, officials stress the importance of skepticism, careful verification, and prompt reporting. By monitoring the activities of loved ones and alerting state authorities about suspicious behaviors, communities can help thwart the efforts of fraudsters before they can exploit any more unsuspecting victims.
