Artificial intelligence (AI) refers to a number of different technologies that enable computers to sense, understand, act, and learn with human-like levels of intelligence. Due to AI technology, computers are able to perform a variety of advanced functions.
Scammers are aware of the hype around AI and are using this hype to their advantage to trick investors. One common type of investment fraud is where scammers use certain buzzworthy terms to entice investors to hand over their money. There has been an increase in investment scams that claim to use AI to make money for investors. Usually, these types of investment frauds claim that their AI can trade crypto on behalf of investors and generate too-good-to-be-true profits.*
In addition to using the term and hype around AI to trick investors, scammers also have the ability to use AI technology itself.
- AI can be used to create people who don’t really exist.
- AI can also be used to clone voices.
Protect Yourself
- Scammers lie. Be aware that scammers lie to investors about supposed investment opportunities. Many investment platforms that claim to trade crypto on behalf of investors are complete scams with no actual trading activity.
- Be cautious about investment platforms that claim to use AI to generate returns for investors. These lies are intended to trick investors into handing over their money (often in the form of crypto assets).
- Be very suspicious of people promoting certain investment opportunities on online platforms.
- Some schemes, such as Ponzi or pyramid schemes, rely on users to refer others to make money. An investment “opportunity” that asks you to recruit new investors may be a red flag.
- Watch out for investments that promise high returns with little risk – if it seems too good to be true, it usually is!