Attackers use artificial intelligence to deceive investors, and the popularity of social networks and influencers makes it easier to spread false information. The CFTC's Office for Training and Working with Clients warned about this.
"Unfortunately, AI has become another opportunity for attackers to deceive unsuspecting investors," the statement said.
According to the division, scammers promise "huge profits" thanks to trading bots, trading signal algorithms and arbitrage using artificial intelligence. The CFTC urged "beware of hype" and reminded that this technology "cannot predict the future or sudden market changes."
As an example, Mirror Trading International Proprietary Limited and its head Cornelius Johannes Steinberg, who became defendants in a $1.7 billion fraud case, are cited. In April 2023, the court ordered the latter to pay $1.7 billion in compensation to the victims and a similar amount in the form of a fine to the state.
To avoid trouble, the agency recommended that investors study the history of the company or trader, consult with financial consultants, take risks into account and do not believe everything that "influential people"advertise.
"Fraudsters claim that algorithms created by AI can bring huge profits," the CFTC noted.
According to CertiK data for 2022, the number of fraudulent videos for traders on YouTube increased by 500%. Only from February 16 to 18 of the same year, Group-IB specialists identified 36 fake broadcasts dedicated to investments in digital assets. They brought scammers more than $1.6 million.
After the collapse of FTX, a deepfake of the exchange's founder, Sam Bankman-Fried, spread in social networks, offering to take part in the cryptocurrency draw as compensation.
Despite the update of YouTube's AI video policy, similar content still appears on the platform.
Recall that in October 2023, investor and billionaire Tim Draper warned about scammers who use artificial intelligence to imitate his voice.
"Unfortunately, AI has become another opportunity for attackers to deceive unsuspecting investors," the statement said.
According to the division, scammers promise "huge profits" thanks to trading bots, trading signal algorithms and arbitrage using artificial intelligence. The CFTC urged "beware of hype" and reminded that this technology "cannot predict the future or sudden market changes."
As an example, Mirror Trading International Proprietary Limited and its head Cornelius Johannes Steinberg, who became defendants in a $1.7 billion fraud case, are cited. In April 2023, the court ordered the latter to pay $1.7 billion in compensation to the victims and a similar amount in the form of a fine to the state.
To avoid trouble, the agency recommended that investors study the history of the company or trader, consult with financial consultants, take risks into account and do not believe everything that "influential people"advertise.
"Fraudsters claim that algorithms created by AI can bring huge profits," the CFTC noted.
According to CertiK data for 2022, the number of fraudulent videos for traders on YouTube increased by 500%. Only from February 16 to 18 of the same year, Group-IB specialists identified 36 fake broadcasts dedicated to investments in digital assets. They brought scammers more than $1.6 million.
After the collapse of FTX, a deepfake of the exchange's founder, Sam Bankman-Fried, spread in social networks, offering to take part in the cryptocurrency draw as compensation.
Despite the update of YouTube's AI video policy, similar content still appears on the platform.
Recall that in October 2023, investor and billionaire Tim Draper warned about scammers who use artificial intelligence to imitate his voice.
