AI Scams in Crypto Are Exploding, CFTC Warns


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Fenelon L.

The United States Commodity Trading Commission (CFTC) is warning about a rise in fraudulent scams that use artificial intelligence (AI) to lure crypto investors with the promise of sky-high returns.

Increasingly sophisticated crypto scams

There Commodity Futures Trading Commission (CFTC) The alarm has just been raised about scams linked to artificial intelligence (AI) that are proliferating in the crypto sector.

Relentless scammers are exploiting the growing popularity of AI and encryption 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 that it can generate huge returns through bots, automated trading algorithms, crypto asset arbitrage algorithms, and other AI-assisted technologies.“, declared the CFTC.

These charlatans mainly take advantage of the public’s ignorance about the true limits of AI. They thus cultivate the illusion that this technology can predict the future and definitively beat the markets, whether traditional or cryptographic.

Losses running into billions

However, no matter how sophisticated they are, AI cannot in any way produce fantastic profits or anticipate market ups and downs with certainty. O promises from scammers They are, therefore, pure lies, aiming only to extort money from their victims before they flee.

And fraud is in full swing. Amplified by social media, these false promises of easy profits have already generated losses totaling 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 utmost caution. Dealing with a technology that is still little understood, the miraculous promises about AI They often hide criminals ready to do anything to get rich fraudulently. Distrust must therefore remain in place.

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Fenelon L. avatar

Fenelon L.

Passionate about Bitcoin, I enjoy exploring the intricacies of blockchain and cryptocurrencies and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.

DISCLAIMER

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decisions.

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