Artificial Intelligence (AI) represents the advancement of machines to mimic human intelligence, enabling them to perform tasks that traditionally required human cognition. This technology spans from rule-based systems to sophisticated neural networks capable of learning and adapting. Unfortunately, AI’s capabilities also present new opportunities for scams. For instance, AI can generate convincing phishing emails using natural language processing, making it challenging to discern from legitimate communication. Moreover, AI-driven deepfakes can fabricate realistic identities or manipulate multimedia, leading to deceptive schemes such as impersonation or falsified evidence.

Scammers leverage AI to automate fraudulent activities like fake customer service interactions, automated scam calls, and even algorithmic trading manipulations. These tactics exploit AI’s speed and sophistication to deceive individuals into divulging sensitive information or making financial commitments under false pretenses. To counter these risks, it’s crucial for individuals and organizations to stay informed about AI’s potential misuse, employ robust security measures, verify the authenticity of communications, and educate themselves on recognizing and avoiding AI-driven scams. By proactively addressing these challenges, we can mitigate the risks associated with AI-enabled fraud and safeguard against its misuse in digital interactions.


File ID:  CFTC-PR-8854-24 Date:  January 25, 2024 Accessed:  June 15, 2024 Source URL: PDF: Download (Links work in this file) Categories: Agency Advisory Artificial Intelligence Scams Excerpt: Release Number 8854-24 CFTC Customer Advisory Cautions the Public to Beware of Artificial Intelligence Scams January 25, 2024 Washington, D.C. — The Commodity Futures Trading Commission’s Office of […]