The US Commodity Futures Trading Commission (CFTC) has warned about artificial intelligence (AI) scams promoting fake crypto opportunities and other fraud.
The CFTC’s Office of Customer Education and Outreach (OCEO) says scammers have falsely promoted the potential of AI technology to entice victims.
“With the growth in the use of AI in everyday life, scammers claim that it can generate huge returns using bots, trading signal algorithms, crypto-asset arbitrage algorithms and other AI-enabled technology. The presence of social media platforms and ‘influencers’ makes it even easier for fraudsters to spread false information.”
The CFTC notes that scams promoting the false benefits of AI have stolen tens of millions of dollars from victims, and in one particularly far-reaching case, $1.7 billion worth of Bitcoin from at least 23,000 people.
The regulator says AI technology cannot predict sudden market changes. The CFTC encourages people who encounter perceived investment opportunities involving AI algorithms to research the background of the affiliated companies or traders.
“Perform a reverse image search of key personnel to verify their identities. Research the history of the trading website by checking the age of the domain registration at lookup.icann.org.
Request a second opinion. Discuss the investment with a financial advisor, trusted friend or family member.”
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