State securities regulators ramped up their enforcement efforts in 2024, with a sharp focus on digital asset fraud, technology-driven scams, and the protection of senior investors.
The North American Securities Administrators Association’s 2025 Enforcement Report, which compiles data from 49 US member jurisdictions, shows that state regulators conducted 8,833 active investigations last year, including nearly 5,000 new cases.
Enforcement actions led to more than $259 million in fines and restitution, along with criminal sentences adding up to roughly 288 years of incarceration and 253 years of probation and deferred adjudication.
In a statement accompanying the report, NASAA President Marni Rock Gibson said in the statement that state securities regulators “remain a trusted line of defense” for investors as fraudsters increasingly use technology to target victims.
Amanda Senn, former chair of NASAA’s enforcement section, added that the report “highlights the continued vigilance of NASAA’s members as fraud fighters and the local ‘cops on the beat.’”
For the third consecutive year, digital assets and cryptocurrencies ranked as the leading threat to investors, with so-called pig butchering scams – where fraudsters build trust online before soliciting bogus investments – close behind.
In 2024, state regulators opened 463 investigations involving digital assets and 175 involving social media fraud.
The report pointed to “rapid advancements in the capability and accessibility of artificial intelligence tools, along with increasing reliance on social media, [which] have coincided with the continued proliferation of impersonation and pig butchering scams.”
NASAA's report last year flagged largely the same hot spots, with the previous NASAA President Leslie Van Buskirk calling out bad actors who use tech hype to lure unsuspecting victims.
“Fraudsters often exploit the buzz that comes with innovation and technology to take advantage of investors... bad actors find significant opportunities to try and rip off investors,” Van Buskirk said.
Regulators are leveraging technology to fight back, issuing alerts, shutting down scam websites, and partnering with blockchain and digital asset firms to trace and recover stolen funds.
NASAA's latest report highlights hundreds of investigations that state regulators launched on licensed industry participants, counting 282 broker-dealer firms, 471 investment adviser firms, and 226 investment adviser representatives.
The enforcement actions last year resulted in 86 cases against broker-dealer firms, 100 against investment advisers, and 78 against investment adviser representatives. Unregistered activity remains a persistent concern, with 204 actions against unregistered firms and 260 against unregistered individuals.
Recordkeeping violations, supervision failures, and dishonest or unethical business practices were among the most common violations cited in enforcement actions involving registrants.
Older investors continue to be a primary target for fraudsters. In 2024, state regulators received 3,613 complaints of alleged financial misconduct targeting seniors, leading to 1,652 investigations and 53 enforcement actions involving 676 senior victims. Digital assets, pig butchering, and social media fraud were among the top products and schemes in cases involving seniors.
The report notes that “older investors – those aged 65 and above – remain popular targets for financial fraudsters.” State regulators have adopted measures such as the Model Act to Protect Vulnerable Adults from Financial Exploitation, which has been enacted in 43 states and territories.
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