SAN FRANCISCO: Researchers and US authorities have warned Generation Z against increasingly sophisticated cryptocurrency scams spreading across TikTok, Instagram, Twitch and online gaming platforms, where fraudsters are using artificial intelligence and deepfake technology to steal money from young internet users.
California Attorney General Rob Bonta issued the warning on Monday, highlighting how criminals are exploiting social media, livestreaming services and digital investment schemes to target younger audiences.
Generation Z generally refers to people born between 1997 and 2012, a demographic that frequently uses social media and online gaming platforms.
According to figures presented by Bonta, Americans lost approximately $20.9 billion to internet-related fraud in 2025, including $11.4 billion linked to cryptocurrency scams.
How scammers are targeting Gen Z online
Bonta said criminals were using familiar fraud techniques but adapting them to cryptocurrency payments and modern digital platforms.
He explained that the growing accessibility of cryptocurrency had provided fraudsters with another way to obtain money from victims.
Authorities identified several common methods used to deceive young internet users, including financial manipulation, online blackmail, impersonation and fraudulent investment offers.
One particularly concerning practice involves sexual extortion, commonly known as sextortion, in which criminals threaten to release private photographs or personal information unless victims pay money.
Fraudsters may demand payments in cryptocurrency, making it difficult for victims to recover their funds.
AI-generated voices and deepfake videos fuel scams
Authorities also warned that criminals are increasingly using AI-generated voices and deepfake videos to impersonate family members, celebrities and other trusted individuals.
These technologies allow scammers to create convincing audio and video content designed to make fraudulent requests appear genuine.
Young users may encounter such scams through social media messages, livestreams, gaming communities or online investment promotions.
The use of artificial intelligence can make fraudulent content more difficult to recognise, particularly when scammers impersonate someone the victim knows or trusts.
How young internet users can protect themselves
Cybersecurity precautions can help reduce the risk of falling victim to cryptocurrency fraud and AI-powered impersonation scams.
Users should independently verify unexpected requests for money, avoid sharing sensitive personal information and remain cautious about investment offers promising unusually high returns.
Requests involving urgent cryptocurrency transfers, threats or supposedly private material should be treated as potential warning signs.
Authorities also encourage victims of online extortion to preserve relevant messages and report suspicious activity rather than complying with demands for payment.
The warning highlights growing concerns about how emerging technologies are being used to modernise traditional fraud schemes, particularly on platforms popular among younger internet users.