Operators of dubious investment schemes are taking advantage of the popularity of artificial intelligence (AI) to trick victims. These operators claim that their AI-backed schemes are foolproof and guarantee profits. Raymon Ram, a criminologist specializing in financial forensics, explains that unscrupulous individuals are using AI as a way to gain public trust. They employ AI-driven chatbots that replicate human interactions and deepfake technology to create realistic videos of prominent figures endorsing their schemes.
Although AI can analyze market patterns and offer insights, it cannot consistently predict high returns in the stock market, says Ram. The stock market is influenced by unpredictable factors and emotions, making it impossible for AI systems to pick winning stocks without human oversight. While some legitimate platforms use AI responsibly, fraudulent operators often exaggerate the capabilities of AI to attract investors.
Ram advises potential investors to be cautious when presented with excessively high returns without risk. He also warns against ambiguous technical jargon and pressure to invest, suggesting that investors verify a company’s credentials and be wary of suspicious payment methods. Malaysia has financial regulatory bodies that can help verify a company’s legitimacy.
AI trading uses algorithms and software to analyze market data and trends, informing traders about buying and selling points and providing insights on volume, liquidity, entry, and exit strategies. Advertisements on social media promote crypto arbitrage trading, claiming that AI bots can be set up in just a few clicks. Similarly, forex trading robots, known as expert adviser robots, help traders with signals for currency trading and can be easily found and purchased online.
Criminologist Datuk Dr P. Sundramoorthy emphasizes that while AI can assist in stock analysis, accurate predictions cannot be guaranteed due to the volatility of the equity market. He notes that young adults with dreams of luxury lifestyles and retirees seeking monthly income are particularly vulnerable to falling for these scams.
Although the global trend of AI-related investment scams is on the rise, very few AI-related scams have been reported in Malaysia. The police commercial crimes investigations department aims to raise awareness about AI-related scams to ensure public safety.
Credit: The Star : News Feed
