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The Commodity Futures Trading Commission (CFTC) has recently issued a customer advisory, urging the public to exercise caution and be vigilant regarding potential artificial intelligence (AI) scams.
The advisory specifically alerts individuals to the risks associated with fraudsters who employ AI technology to deceive investors into transferring funds and assets into fraudulent accounts. With the proliferation of social media platforms and a surge in internet bots, AI scams have become more sophisticated and widespread.
To shield against potential scams, the CFTC advises the public to exercise caution when approached by unverified accounts soliciting funds on the internet and social media. Additionally, individuals are encouraged to conduct thorough research on users before initiating any fund transfers to third-party accounts.
AI has been increasingly utilized to deceive individuals through automated trade algorithms, trade strategies, and cryptocurrency trading schemes that promise lucrative returns. Investors are lured into believing that these AI-driven schemes will result in high profits. The CFTC has identified instances where users have lost substantial sums, ranging from tens of thousands to millions of dollars, in money-making schemes and Bitcoin scams that leverage AI algorithms.
Melanie Devoe, the Director of the Office of Customer Education and Outreach (OCEO), emphasized the advisory’s core message, 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.”
The CFTC’s cautionary advisory serves as a reminder for the public to remain vigilant and discerning in the face of evolving technological risks, especially those associated with AI-driven scams.
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