The North American Securities Administrators Association (NASAA) has released its 2025 Enforcement Report that identifies some of the top threats to investors, according to Investment News.
According to NASAA, the use of technology continues to make fraud schemes more sophisticated. For the third consecutive year, the leading fraud threats involved digital assets and cryptocurrencies, followed closely by so-called pig butchering, an investment scam where fraudsters gain the trust of victims over time and then deceive them into investing in fake crypto assets or another fraudulent investment opportunity.
NASAA reported that in 2024, state securities regulators conducted 8,833 active investigations, including 4,937 new and 3,896 ongoing cases, and initiated 1,183 enforcement actions. These actions led to more than $259 million in monetary fines and restitution, and criminal relief of approximately 288 years of incarceration and 253 years of probation and deferred adjudication. The report is based on data compiled from 49 U.S. member jurisdictions.
State regulators reported hundreds of investigations into digital assets (463), social media fraud (175), and impersonation schemes (81). States also reported opening 229 new investigations that involved pig butchering and initiating 19 enforcement actions.
But while the use of technology is driving much of the fraud being committed, it is also helping regulators combat digital fraudsters by issuing alerts, shutting down scam websites, and partnering with blockchain and digital asset firms to trace and recover stolen funds.
“Scammers are increasingly hiding behind screens and algorithms to exploit investors with sophisticated, tech-driven schemes,” said NASAA President Mami Rock Gibson. “The 2025 Enforcement Report makes clear that state securities regulators are not only keeping pace, they remain a trusted line of defense. Through proactive investigations, strategic partnerships, and decisive enforcement actions, NASAA members are committed to protecting the public from financial harm in an evolving digital landscape.”
Enforcement actions in 2024 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. Among the most common violations involving registrants were recordkeeping violations, supervision failures, and dishonest or unethical business practices.
A top priority for state regulators continues to be protecting seniors who are considered to be prime targets for financial fraudsters. The report notes that last year there were 3,613 complaints of alleged financial misconduct targeting older investors, leading to 1,652 investigations and 53 enforcement actions involving 676 senior victims. The top products and schemes in investigations involving senior victims were digital assets (151), pig butchering (91), stocks and similar equities (75), social media fraud (69), and promissory notes (51).
“This report highlights the continued vigilance of NASAA’s members as fraud fighters and the local ‘cops on the beat,’” said Amanda Senn, 2024–2025 Chair of NASAA’s Enforcement Section and Director of the Alabama Securities Commission.
Within the licensed securities industry, those investigated by regulators included broker-dealers (282), agents (568), investment advisers (471), and investment adviser representatives (226). These resulted in 86 reported enforcement actions against broker-dealer firms, 47 against agents, 100 against investment advisers, and 78 against investment adviser representatives. Regulators also reported opening 345 investigations involving unregistered firms and 944 involving unregistered individuals, and initiating 204 enforcement actions against unregistered firms and 260 against unregistered individuals.
The attorneys at Hyman Cotter PC were formerly senior attorneys in the SEC’s Division of Enforcement. We have represented clients in regulatory matters while working at Morgan Stanley and in private practice at some of the world’s largest law firms. Therefore, we understand the complexities that come with being the subject of a regulatory inquiry, and we have the experience to guide and advise you through any type of regulatory investigation. If you are the subject of a regulatory proceeding, contact Hyman Cotter PC at 312-291-4600 or through our online contact form for a free consultation.
