Scammers are increasingly targeting residents in Hawaii this holiday season, using advanced AI technology to carry out deceptive investment schemes. According to the state’s Department of Commerce and Consumer Affairs (DCCA), these scams range from romance-driven “pig butchering” tactics to sophisticated deepfake impersonations and fraudulent trading bots. The state’s Business Registration Division has reported a rise in incidents where criminals leverage social media and cloned websites to impersonate trusted brands and even acquaintances.
Officials have highlighted that these scams are particularly concerning as they often target vulnerable populations, including older residents and younger individuals engrossed in short-form video content. Commissioner Ty Y. Nohara emphasized the urgency of the situation, stating, “The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money.” The DCCA is urging residents to approach any unsolicited investment pitches with skepticism.
Types of Scams on the Rise
Regulators have compiled a warning list based on the North American Securities Administrators Association (NASAA), which details various investor hazards. The list includes affinity scams, pig butchering schemes, deepfake impersonations, phantom AI trading bots, and spoofed websites and applications. In 2024, state securities regulators reported over 8,800 active investigations related to these scams, leading to more than $259 million in fines and restitution. Alarmingly, roughly 22.2% of these bad actors utilized deepfake technology, with nearly 32% of investigations originating from social media platforms.
Recent reports indicate that local communities in Hawaii are already feeling the impact, with hundreds of complaints and significant financial losses linked to cryptocurrency scams that particularly target kupuna (elderly residents). In 2024, regulators documented over 1,600 cases involving older victims nationwide, a trend that has been highlighted in the DCCA’s holiday alert. Community organizations and lawmakers have flagged cash-to-crypto kiosks and impersonation schemes as especially hazardous, as they can quickly convert hard-earned cash into difficult-to-recover cryptocurrency.
Protecting Yourself Against Scams
To help residents safeguard against these scams, officials recommend several precautionary measures. First, take your time if someone pressures you to act immediately. Avoid sending money through gift cards or wire transfers for investment opportunities. It is crucial to verify identities using official contact numbers rather than relying on information received through texts or direct messages.
Residents can confirm whether an investment seller is licensed by checking with 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. Statewide fraud reporting is also available by calling 58-SCAMS or 1-877-HI-SCAMS. Families are encouraged to discuss common warning signs with older relatives and to save screenshots, messages, and transaction records, as these can aid investigators.
Regulatory bodies are not merely issuing warnings; they are actively pursuing enforcement actions. According to NASAA, hundreds of enforcement actions and numerous criminal referrals have been linked to investment fraud. In 2024, regulators initiated 944 investigations into unregistered solicitors. Depending on the findings, these cases could result in civil penalties, restitution, and criminal charges. Victims who retain emails, texts, social media posts, and transaction details provide law enforcement with valuable resources to potentially recover lost funds and shut down repeat offenders.
With holiday shopping in full swing and the prevalence of online investment pitches increasing, officials stress that skepticism, careful verification, and prompt reporting are essential defenses against scams. It is crucial to remain vigilant and report any suspicious activities to state authorities, allowing investigators to connect the dots before scammers can exploit more victims.
