California Attorney General Rob Bonta warned residents about surging cryptocurrency fraud and sextortion scams that increasingly target younger people through social media.
Speaking at an Oct. 19 news conference, Bonta said Americans lost $20.9 billion to internet-based scams in 2025, according to Inland Valley News. Of that total, $11.4 billion came from cryptocurrency scams alone. California ranked first among states in both the number of complaints and reported losses, more than $3.67 billion, according to the attorney general's office.
The warning carries weight for Rialto families with teens and young adults active online. Bonta said his office has seen a sharp rise in reports of Gen Z consumers being targeted on platforms such as Twitch, TikTok and Instagram.
"These fraudsters aren't just targeting elders — we're seeing a sharp rise in reports of Gen Z being preyed upon on platforms like Twitch, TikTok, and Instagram," Bonta said in a statement from his office. He called cryptocurrency fraud "the nation's costliest cybercrime."
Artificial intelligence, deepfakes and malicious smart contracts have made fraud easier to carry out and harder to detect, Bonta said. Scammers can now use AI to impersonate loved ones through manipulated video and audio, or generate fake celebrity endorsements.
Scams to watch for
One growing scheme is the "rug pull." Fraudsters promote low-priced stocks or volatile cryptocurrencies through online investment groups and streaming communities. After driving up prices, scammers sell their holdings, and values collapse. Investors are left with losses.
Bonta also warned about sextortion. Scammers trick or coerce victims into sharing explicit images, then threaten to distribute them unless the victim pays. Bonta advised victims not to give in to demands. He said scammers often do not release the images when victims refuse to pay. He recommended ignoring and blocking the perpetrators.
A third scheme, recovery fraud, targets people who already lost money. Fraudsters impersonate blockchain recovery specialists or law enforcement officials and demand additional payments while promising to recover stolen assets.
How to stay safe
Bonta urged Californians to be skeptical of promises of large returns on small investments, fake cryptocurrencies resembling established ones, and AI-generated celebrity endorsements.
"Never use a crypto ATM," Bonta said, noting that transactions can be difficult to trace and reverse and that the machines lack adequate consumer protections.
The attorney general's office recommended pausing nine seconds before clicking, engaging or sending money to anyone online. Social media profiles on Facebook, Instagram, TikTok, Twitch and WhatsApp are targets for scammers looking to build relationships, the office said.
New law and enforcement actions
Bonta highlighted Senate Bill 1208 (SB 1208), signed into law by Gov. Gavin Newsom on Oct. 2. The law allows law enforcement to petition a court to return seized cryptocurrency to victims, including when alleged perpetrators are outside U.S. jurisdiction. Any digital assets not distributed to victims go to the State Restitution Fund, administered by the California Victim Compensation Board, according to the attorney general's announcement of the signing.
The California Department of Justice (DOJ) has shut down more than 100 fraudulent websites in recent years that collectively scammed victims out of at least $8.3 million, Bonta said.
Residents who have fallen victim to scams can report them to the California DOJ at oag.ca.gov/report.
