California Attorney General Rob Bonta issued this warning on Monday, noting that criminals are targeting “Generation Z”—those born between 1997 and 2012—through social media, live streams, and various digital investment schemes.

According to data presented by Rob Bonta, American citizens suffered a total loss of $20.9 billion due to online fraud in 2025, with $11.4 billion of that amount lost to cryptocurrency-related scams.

“While these are the same types of frauds we have long fought against, the widespread accessibility of cryptocurrency has provided scammers with a new and dangerous method to misappropriate people’s funds.”

— California Attorney General Rob Bonta

Bonta remarked that while these are the same types of frauds we have long fought against, the widespread accessibility of cryptocurrency has provided scammers with a new and dangerous method to misappropriate people’s funds.

Authorities have identified several common methods used to target young people online.

Reality check #1

The scale is staggering: $20.9 billion lost to online fraud in a single year, with more than half—$11.4 billion—tied to cryptocurrency. These are not isolated incidents; they represent a systemic vulnerability that scammers are actively exploiting.

One such method is “sextortion” (sexual blackmail), in which criminals threaten to release a victim’s private images or personal information unless the victim pays a sum of money or cryptocurrency. Other methods of fraud include the use of voices generated by artificial intelligence (AI) and deepfake videos, through which scammers impersonate relatives, well-known figures, or trusted individuals to deceive people.

Reality check #2

Sextortion is not just a privacy violation—it is a form of extortion that can leave lasting psychological harm. Young people are particularly vulnerable because they may feel too ashamed to report it. Authorities urge victims to come forward; silence only protects the scammers.

“Scammers are using AI and deepfakes to impersonate relatives, public figures, or trusted individuals. The voice on the phone may not be who you think it is.”

— The new face of fraud
Reality check #3

Deepfake technology has advanced to the point where a convincing fake video or voice call can be produced in minutes with minimal resources. The old advice—”if it sounds too good to be true, it probably is”—now needs an update: “if it sounds exactly like someone you trust, verify it anyway.”