The Commodity Futures Trading Commission (CFTC) has issued a customer advisory alerting the public to be vigilant against artificial intelligence (AI) scams.
The advisory warns that fraudsters are leveraging AI technology to deceive investors into transferring funds and assets to their accounts. The prevalence of social media and the proliferation of bots online have contributed to the sophistication and frequency of these scams.
To protect themselves, individuals are advised to be cautious of unverified accounts soliciting funds on the internet and social media. It is essential to conduct thorough research on any user before transferring any money to a third-party account.
AI can mislead investors through automated trading algorithms, strategy pitches, and enticing cryptocurrency schemes that promise high returns. The CFTC has noted instances where users have lost tens of thousands or even millions of dollars due to these deceptive money-making schemes and Bitcoin scams.
Melanie Devoe, Director of the Office of Customer Education and Outreach (OCEO), emphasized the need for caution, stating, “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.”