AI-related Scam

What is an AI-related Scam?

AI is a broad term that refers to technologies that enable computers to understand, act, and learn with human-like levels of intelligence.

Fraudsters use AI to perpetrate investment scams in a number of ways, including but not limited to:

• Imitating a legitimate person or thing, including “deepfake” audio, video, and websites.
• Unregistered investment platforms that claim they are using AI to generate guaranteed returns with little or no risk.
• Making false claims about their use of AI technology to create large profits.

How Does an AI-related Scam Work?

AI can quickly produce texts, emails, and messages in the style and language of a specific person. It can clone anyone’s voice, and in just minutes, AI can create fake images or videos of real people.

Fraudsters can use AI to:

• Impersonate a company or individual to promote fake products or services.
• Generate a real-looking but fake investment opportunity.
• Publish fake reviews that look like they came from real people.
• Use voice cloning for deceptive telemarketing.

Watch out for one or more of these characteristics of AI-related scams:

• A public figure promoting an investment opportunity, or any other promotion they would not normally do.
• Unusual body or lip movement in videos.
• Strange phrasing or inconsistencies in the content.
• You cannot meet with a human in person.
• Unexpected phone calls or messages, especially if the sender conveys a sense of urgency, fear, or panic.
• Websites that mimic real companies. You can identify a fake website by:
  • Checking the domain name, which may closely resemble the genuine site.
  • Paying attention to contact information and privacy policies. Legitimate businesses should provide you with a physical address and working phone number in the contact section.
  • Searching for regulator warnings and negative reviews. Scammers will often publish a large number of fake positive reviews.