The United States Commodity Trading Commission (CFTC) is warning of a surge in scams fraudulently using artificial intelligence (AI) to lure crypto investors with the promise of sky-high returns.
Increasingly sophisticated crypto scams
The Commodity Futures Trading Commission (CFTC) has just sounded the alarm about scams linked to artificial intelligence (AI) which are proliferating in the crypto sector.
Ruthless scammers are exploiting the growing popularity of AI and crypto to lure their victims. They claim to have revolutionary algorithms and stock robots capable of generating incredible profits in all circumstances.
“ With the increasing use of AI in our daily lives, scammers claim it can generate huge returns via bots, automated trading algorithms, crypto asset arbitrage algorithms and other technologies AI-assisted“, declared the CFTC.
These charlatans mainly take advantage of the public’s ignorance of the true limits of AI. They thus cultivate the illusion that this technology can predict the future and definitely beat the markets, whether traditional or crypto.
Losses running into billions
However, as sophisticated as they are, AI in no way makes it possible to produce fantastic profits or to anticipate with certainty the ups and downs of the markets. The scammers’ promises are therefore pure lies, aiming only to extort money from their victims before fleeing.
And the scam is in full swing. Amplified by social networks, these false promises of easy profits have already generated losses amounting to billions of dollars, according to the CFTC. In 2021 alone, scams based on false AI promises reportedly caused the equivalent of $1.7 billion in Bitcoin to disappear.
Faced with this scourge, the CFTC therefore calls on investors to exercise the greatest caution. Dealing with a technology that is still poorly understood, the miraculous promises concerning AI often hide crooks ready to do anything to enrich themselves fraudulently. Distrust must therefore remain in place.
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