The growing popularity and complexity of AI is being used to lure investors into scams. Look out for these red flags to help keep your money safe:
Unregistered/Unlicensed Investment Platforms Claiming to Use AI
Investors should remember that federal and state securities laws generally require securities firms, professionals, exchanges, and other investment platforms to be registered. If a promoter lacks registration status, investigate further before investing any money.
There is a surge in fraudulent “AI-powered” trading platforms has been observed exploiting deepfake technology and fabricated online content to deceive investors.
According to a new investigation by Group-IB, scammers are deploying convincing fake videos, phony reviews and targeted online ads to lure victims into fraudulent investment schemes.
At the heart of these campaigns are AI-generated deepfake videos featuring public figures, such as Dutch politician Geert Wilders, endorsing fictional trading platforms.
These videos mimic authentic news broadcasts, complete with synthetic voice cloning and staged urgency to create a sense of exclusivity. Victims are directed to fabricated news articles containing false expert interviews, doctored charts and glowing testimonials, all designed to prompt registration.
Once users sign up, they are directed toward platforms that request a small initial deposit, typically $100–$250, to avoid arousing suspicion. The sites often demand sensitive personal data, including ID scans, proof of residence and even credit card images, under the guise of account verification.
Multi-Channel Distribution
Researchers identified a network of YouTube channels, social media accounts and blog posts on platforms like Medium and Blogspot promoting these scams. The operations use localized content scripts to match a user’s country and language, increasing credibility.
Campaigns are tailored to target users in countries including India, the UK, Germany, France, Spain, Belgium, Mexico, Canada, Australia, the Czech Republic, Argentina, Japan and Turkey.
Key tactics identified include:
- AI-generated videos impersonating public figures
- Fake review sites hosted on free blogging platforms
- Social media pages promoting fraudulent platforms with casual, relatable posts
- Localization of scam websites via IP and language detection
The platforms are reportedly inaccessible from US and Israeli IP addresses, suggesting a focus on other regions..
The report warns that these scams combine professional design, psychological pressure and social proof to erode victims’ skepticism.
“This scheme, which utilizes social proof, psychological pressure, and professional design, is highly effective,” the researchers concluded.
The findings highlight the need for vigilance, particularly when encountering investment offers tied to AI, deepfake endorsements or unverified online reviews.
Generative AI, like its name suggests, focuses on generating new data or content. Like an artist creating a new painting, it can invent novel ideas, stories, or designs based on trained data. For example, generative AI can be used to create new audio, images, text, and videos by learning from existing ones. You may have had experiences with websites or apps that use generative AI to generate human-like responses in chat conversations.
