Scammers are intensifying their activities in Hawaii, particularly during the holiday season, as reported by state consumer protection officials. A new wave of AI-driven investment scams is exploiting both older residents and younger individuals, employing tactics ranging from “pig butchering” schemes to deepfake impersonations and fraudulent trading bots. The state’s Business Registration Division has highlighted the alarming rise of these scams, which leverage social media and cloned websites to masquerade as reputable brands and even acquaintances.
According to Ty Y. Nohara, Commissioner of the Department of Commerce and Consumer Affairs (DCCA), the rapid advancements in technology and artificial intelligence are providing new tools for scammers to defraud the public. The DCCA urged residents to approach unsolicited investment pitches with skepticism. “The rapid growth of technology and the rise of artificial intelligence gives scam artists new tools to steal your money,” Nohara stated.
Emerging Threats and Regulatory Responses
The DCCA has drawn attention to a list of investment threats compiled by the North American Securities Administrators Association (NASAA). This annual report identifies a dozen significant risks, including affinity fraud, “pig butchering” schemes, deepfake impersonations, and the use of fake trading bots. The report revealed that state securities regulators initiated over 8,800 active investigations in 2024, resulting in more than $259 million in fines and restitution. Alarmingly, approximately 22.2% of the scammers used deepfake technology, while nearly 32% of investigations originated from social media platforms.
The local community is already feeling the impact. Reports indicate that hundreds of complaints and millions in losses have emerged from cryptocurrency-related scams targeting Hawaii’s kupuna, or elderly residents. In 2024 alone, regulators documented over 1,600 cases involving older victims, underscoring a concerning trend highlighted in the DCCA’s recent holiday alert.
Protecting Yourself from Scams
Officials have emphasized the importance of vigilance. Residents are advised to be cautious if approached with urgent investment opportunities. Key recommendations include taking time to consider offers, avoiding payments through gift cards or wire transfers, and verifying identities using official contact numbers rather than those provided in unsolicited messages. Investors can check the licensing of sellers through the DCCA’s Business Registration Division. Complaints can be filed through the securities enforcement portal or by contacting the division directly at (808) 586-2744. For statewide fraud reporting, residents can call 58-SCAMS or 1-877-HI-SCAMS.
Community organizations and lawmakers are calling attention to cash-to-crypto kiosks and impersonation schemes, which can quickly convert cash into cryptocurrency, making recovery challenging. Families are encouraged to discuss common warning signs with older relatives and to document any suspicious communications, as these records may prove essential for investigators.
Regulatory Enforcement and Future Outlook
Regulatory bodies are taking proactive measures beyond issuing warnings. The NASAA reports numerous enforcement actions and criminal referrals linked to investment fraud. In 2024, regulators launched 944 investigations into unregistered solicitors, which could lead to civil penalties, restitution, and even criminal charges.
With holiday spending increasing and the number of investment solicitations on the rise, officials stress that skepticism, careful verification, and prompt reporting are vital defenses against fraud. Keeping an eye on loved ones and reporting any suspicious activity to state authorities can help to protect the community from falling victim to these scams. As the landscape of fraud evolves, informed and vigilant residents are crucial in combating these threats.