Scammers are actively targeting residents in Hawaii during the holiday season, exploiting advanced technology to perpetrate investment fraud. State consumer protection officials report a surge in AI-driven scams, including deceptive schemes known as “pig butchering,” deepfake impersonations, and fraudulent trading bots. With the busy shopping season in full swing, these scams are increasingly directed at both older residents and tech-savvy younger individuals.
The Department of Commerce and Consumer Affairs (DCCA) has warned that criminals are utilizing social media and cloned websites to masquerade as reputable brands and even friends. According to Ty Y. Nohara, Commissioner of the DCCA, “The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money.” This warning underscores the urgency for residents to remain vigilant against unexpected investment pitches.
Scams on the Rise: Notable Threats and Community Impact
The DCCA’s Business Registration Division has identified several significant threats, as highlighted in the latest report from the North American Securities Administrators Association (NASAA). The report lists various investor hazards, including affinity scams, deepfake impersonations, phantom AI trading bots, and misleading advertisements on social media platforms. In 2024 alone, state securities regulators initiated over 8,800 active investigations, leading to more than $259 million in fines and restitution for victims.
Recent reports indicate that Hawaii communities have already suffered significant losses. Hundreds of local complaints have emerged, particularly concerning scams targeting kupuna, or elderly residents. Reports reveal losses amounting to $7 million linked to cryptocurrency schemes that often convert cash into cryptocurrency within minutes, making recovery difficult. Nationally, regulators documented over 1,600 cases involving older victims in 2024, prompting urgent alerts from community groups and lawmakers.
Protecting Yourself: Key Strategies and Reporting Mechanisms
Officials emphasize the importance of caution when approached with investment opportunities. Residents are advised to take their time when faced with high-pressure sales tactics, refrain from sending money through gift cards or wire transfers, and verify identities through official channels. To determine whether an investment seller is licensed, individuals can consult the DCCA Business Registration Division. Complaints can be filed through the securities enforcement portal or by contacting the Division at (808) 586-2744.
For statewide fraud reporting, residents can call 58-SCAMS or 1-877-HI-SCAMS. Families are encouraged to discuss warning signs of fraud with older relatives and to save any relevant communication, including screenshots and transaction records, which can assist investigators in tracking down scammers.
State regulators are actively pursuing enforcement actions. According to NASAA, there were hundreds of enforcement actions and numerous criminal referrals related to investment fraud in 2024, including 944 investigations targeting unregistered solicitors. Depending on the findings, these cases may lead to civil penalties, restitution, and potential criminal charges. Maintaining detailed records of communication and transactions enhances law enforcement’s ability to recover lost funds and prevent further fraud.
As holiday spending increases and investment scams proliferate online, officials stress that skepticism, careful verification, and prompt reporting are essential defenses. Residents are urged to look out for their loved ones and report any suspicious activity to state authorities, facilitating timely intervention before further scams can occur.
