AI Investment Scams Increase: How to Protect Yourself

According to Yahoo News, artificial intelligence (AI) investing is a growing trend that uses software and algorithms to analyze market trends and make predictions based on historical data while considering price volatility and risk. However, scammers are now exploiting the AI hype to deceive investors and steal their money. California's Department of Financial Protection and Innovation (DFPI) reported an increase in investment scams claiming to use AI to generate profits for investors, particularly in the crypto trading sector. The Autorité des marchés financiers (AMF) has also warned about the rise in investment scams using AI technology. Scammers can use deepfakes to manipulate people into investing in fictitious opportunities. The DFPI suggests several steps to protect yourself from these scams: 1. Be aware that many investment platforms claiming to trade crypto on behalf of investors are scams. 2. Be cautious of investment platforms that claim to use AI to generate returns for investors, as these claims are often lies to trick investors into handing over their money, often in the form of crypto assets. 3. Watch out for people promoting investment opportunities on online platforms, as the DFPI regularly tracks new scams on YouTube and other platforms. 4. An investment opportunity that asks you to recruit other investors, such as a Ponzi or pyramid scheme, is typically a red flag. 5. Be wary of investments that promise high returns with little risk. Scammers also use buzzworthy terms to entice investors and employ AI to create fake people, deepfakes, or clone voices. The AMF noted that deepfakes are now prevalent on most social media platforms and the internet, and the technology can also be used to create fake people with online profiles to deceive investors.