The Commodity Futures Trading Commission (CFTC) has issued a customer advisory warning to the public to keep an eye out for artificial intelligence (AI) scams.
The warning cautions against fraudsters who utilise AI technology to trick investors into transferring funds and assets into their accounts. The widespread use of social media and mass amounts of bots on the internet has made AI scams more complex and prevalent.
To avoid potential scams, the public should be wary of unverified accounts reaching out for funds on the internet and social media, and to conduct thorough research of a user if obligated to transfer anything to a third party account.
AI can trick individuals using automated trade algorithms, trade strategies, and crypto trading schemes that entice investors into believing that rates will yield high returns. The CFTC has found users losing tens of thousands and even millions of dollars in money-making schemes and Bitcoin scams that bait users using AI algorithms.
Director of the Office of Customer Education and Outreach (OCEO), Melanie Devoe, stated: “When it comes to AI, this advisory is telling investors, ‘Be wary of the hype’. Unfortunately, AI has become another avenue for bad actors to defraud unsuspecting investors.”