Investment Scams Using AI: You Are The Primary Target!

Generative AI has been garnering much attention lately. It enables the creation of diverse content, such as code, audio, images, simulations, videos, and text. Some websites and apps also utilize generative AI to generate chat responses that resemble humans.

However, scammers are capitalizing on the excitement surrounding AI to deceive investors. They commonly employ buzzwords to lure investors into parting with their funds through investment scams. The DFPI has observed a surge in investment scams that purport to utilize AI for profit generation. These fraudulent schemes typically assert that their AI can trade crypto and deliver unrealistic returns.

Investors are Being Deceived Using AI

Investors must exercise caution in light of the creative ways fraudsters exploit AI and its buzz to deceive them. By using AI, it’s possible to generate non-existent individuals. A crypto investment platform, for instance, created a YouTube video featuring its “CEO” endorsing the company to attract investors. The truth was that this was a fraudulent act – the person was not the company’s actual CEO but a fabricated avatar designed to read a script using AI technology.

Cloning voices is another application of AI. If you get a call from someone who sounds familiar, it could be a fraudster utilizing a voice clone.

🚨 Alert: #Cryptocurrency investment scams surged in 2022, Aussies lost $148.3M (AUD$221.3M) and bank transfers were the main payment method. Victims lost an average of $37,900 each. 🙅‍♂️ Protect yourself & be aware of #scams on social media & apps! #crypto

— Krypton AI (@KryptonAi) April 18, 2023

Protecting Yourself From AI Scams

It’s crucial to understand that scammers deceive investors with fake investment opportunities. Numerous investment platforms that assert their ability to trade crypto for investors are fraudulent and engage in no actual trading.

Exercise prudence with investment platforms that allege their use of AI to produce returns for investors. Often, these assertions are deceitful and aim to defraud investors by soliciting their funds, frequently in the form of crypto assets.

Maintain high suspicion toward individuals who promote investment opportunities on online platforms like Telegram and YouTube. The DFPI constantly monitors new fraudulent activities originating from these platforms.

Certain scams, like pyramid or Ponzi schemes, depend on user referrals to generate revenue. Ponzi schemes remunerate initial investors with funds obtained from more recent ones. Pyramid schemes compensate for enlisting new investors. An investment proposal demanding you enroll new investors is a warning sign. Stay cautious of investments that pledge high profits with minimal risk – typically, such proposals are too good to be true.

Featured image from TechCrunch.com