The U.S. Commodity Futures Trading Commission alerts the public to the surge in crypto-AI scams.
Highlighting incidents resulting in the loss of 30,000 BTC, valued at approximately $1.7 billion.
The U.S. Commodity Futures Trading Commission (CFTC) has issued a warning to individuals regarding the rising trend of cryptocurrency scams utilizing Artificial Intelligence (AI).
In their recent press release titled “Customer Advisory: AI Won’t Turn Trading Bots into Money Machines,” the CFTC sheds light on the deceptive strategies employed by scammers exploiting AI technology to entice investors with false assurances of significant profits.
The advisory underscores the increasing integration of AI into daily life and how scammers exploit this trend by making extravagant claims about generating wealth through AI-driven trading bots, signal algorithms, and cryptocurrency arbitrage.
These fraudulent activities often gain momentum on social media platforms, aided by influencers who either inadvertently or intentionally disseminate false information.
This exploitation of AI’s allure has facilitated scammers in targeting investors, particularly those lacking expertise in AI.
The CFTC, via its Office of Customer Education and Outreach (OCEO), emphasizes the manipulation of AI technology by fraudsters, who deceive investors with false promises, leading to financial losses.
The CFTC reveals that it has identified several fraudulent schemes involving AI, one of which resulted in the loss of 30,000 bitcoins, equivalent to approximately $1.7 billion at the time.
Furthermore, the CFTC advises investors to exercise caution and thoroughly vet the credentials of any individual or company offering investment opportunities. It recommends seeking advice from financial professionals as needed to avoid falling victim to deceptive schemes.
To combat the escalating threat of AI-driven scams, the CFTC collaborates with regulatory bodies, law enforcement agencies, and industry stakeholders to enhance surveillance and enforcement measures in the cryptocurrency sector.
The objective is to detect and prosecute individuals engaged in fraudulent activities, thus shielding investors from falling prey to these deceitful practices.
Melanie Devoe, head of the CFTC’s Office of Customer Education and Outreach, expresses concern about the proliferation of AI-related scams, stressing the importance of investors exercising caution and rejecting unrealistic promises.
She remarks, “Unfortunately, AI has become another avenue for bad actors to defraud unsuspecting investors.”
In summary, the CFTC advises investors to approach AI-related investment opportunities skeptically and invest their funds wisely, avoiding unreasonable promises.
