TDCI: Financial Scammers Offer Tricks, Not Treats

NASHVILLE – Ahead of Halloween’s arrival on Oct. 31, the Tennessee Department of Commerce & Insurance (TDCI)’s Securities Division is warning consumers to stay alert for scammers who might be impersonating government officials, law enforcement officers, or financial experts in order to trick them out of their hard-earned savings.

According to the 2025 Enforcement Report from the North American Securities Administrators Association (NASAA), scams involving digital assets, social media, and impersonation are among the top threats this year with artificial intelligence (AI) making it easier for criminals to create convincing fakes. Fraudsters can now clone voices, generate fake videos, and impersonate trusted individuals or organizations. This all results in tricking victims into sharing personal information, transferring money, or granting remote access to devices. These scams are increasingly polished, personalized, and difficult to detect until after significant losses occur.

Even more concerning are reports of in-person scams. In a recent case, investigators arrested a suspect who traveled across the country to collect hundreds of thousands of dollars from a victim who believed they were investing in cryptocurrency. The case is part of a growing “pig butchering” scheme in which criminals build trust with victims before luring them into fraudulent investments. Other reports describe so-called “gold traders” or “bankers” who contact victims online, build rapport, and later arrive in person to collect cash, gold, or gift cards under false pretenses.

“An investment scam may be lurking in your text messages, phone calls, or social media accounts,” said TDCI Assistant Director for Securities Elizabeth Bowling. “Always personally verify requests for money or personal information and never engage with suspected fraudsters. Even small interactions with scammers can have serious consequences. Instead, you should immediately contact law enforcement with your concerns if you suspect you’re dealing with a scammer.”

TDCI’s Securities Division offers the following tips to protect investors from fraud this Halloween and all year long:

• Verify before you invest. Check the registration of investment professionals and firms. Use resources like BrokerCheck and IARD to independently verify the identity of anyone soliciting personal information or investment funds. Confirm that you’re dealing with a verified securities professional.
• Be skeptical of unsolicited offers. Scammers often use social media or messaging apps to lure victims. Trust your instincts. If an opportunity appears exceptionally favorable, exercise caution.
• Don’t rush. High-pressure tactics are a red flag that you’re dealing with someone who might not want you to look too closely at the details of an investment.
• Questions about an investment or an adviser? Contact TDCI’s Securities team today by phone at (615) 741-2947 or 800-863-9117 (toll free), by email at securities.1@tn.gov, or online tn.gov/securities.

###