NASAA Enforcement Report Reveals 8,833 Investigations in 2024, Highlights Scrutiny of Broker-Dealers and Unregistered Firms

The North American Securities Administrators Association (NASAA) has released its 2025 Enforcement Report, revealing that state regulators across 49 U.S. jurisdictions conducted 8,833 active investigations last year, including nearly 5,000 new cases.

Enforcement actions resulted in over $259 million in fines and restitution, alongside criminal penalties totaling 288 years of incarceration and 253 years of probation or deferred adjudication.

For the third year running, digital assets and cryptocurrencies topped the list of investor threats, followed closely by pig butchering scams—fraud schemes where criminals build online trust before soliciting fake investments. In 2024 alone, regulators opened 463 investigations into digital assets and 175 into social media-related fraud.

The report highlights how rapid advances in AI tools and growing reliance on social media have fueled impersonation and pig butchering scams. 

Regulators are responding with tech-driven enforcement, issuing alerts, dismantling scam websites, and collaborating with blockchain firms to trace and recover stolen assets.

Licensed industry participants remain under scrutiny. In 2024, regulators launched investigations into 282 broker-dealer firms, 471 investment adviser firms, and 226 adviser representatives. These led to 86 cases against broker-dealers, 100 against advisers, and 78 against representatives. Unregistered activity also drew attention, with 204 actions against unregistered firms and 260 against unregistered individuals.

Common registrant violations included recordkeeping failures, poor supervision, and unethical conduct.

Older investors continue to be prime targets. Regulators received 3,613 complaints of alleged financial misconduct targeting seniors, resulting in 1,652 investigations and 53 enforcement actions involving 676 senior victims. Digital assets, pig butchering, and social media fraud were the most prevalent schemes in cases involving seniors. Investors aged 65 and above remain disproportionately vulnerable to financial fraud.

The enhancement in state-level enforcement aligns with broader federal efforts. In late 2024, the Commodity Futures Trading Commission (CFTC) reported a record $17.1 billion in monetary relief for FY24, while the U.S. Securities and Exchange Commission (SEC) filed 583 enforcement actions, securing $8.2 billion in financial remedies.