Scammers are using artificial intelligence to make their frauds more convincing than ever, the Commodity Futures Trading Commission (CFTC) warned in a new advisory today (Wednesday).

According to the regulator, AI-generated fake images, voices, and even live video calls are now being weaponized to create elaborate financial scams. Investors must stay vigilant as AI technology makes it harder to distinguish real from fake.

AI-Generated Deception

“Fraudsters can use new technologies to mask their identities, not only in still photographs, say, in social media profiles, but also in video chats that alter their facial features and voices to match,” said OCEO Director Melanie Devoe. “Identifying real from fake can be difficult. The best defense is to never give money to people you only meet online.”

The CFTC’s Office of Customer Education and Outreach (OCEO) has released an advisory detailing how generative AI is enabling fraud on an unprecedented scale.

Criminals now leverage AI to fabricate identities with highly realistic photos and videos, forge government and financial documents, and build malicious websites that mimic legitimate trading platforms.

The rapid advancement of AI-powered deepfake technology is also fueling relationship investment scams. Fraudsters manipulate their digital appearances in video chats to gain trust and solicit money from unsuspecting victims.

Regulators Ramp Up Consumer Protection Efforts

The OCEO continues to collaborate with federal and state regulators and consumer protection groups to educate the public on evolving financial fraud tactics. By raising awareness, the CFTC hopes to equip investors with the knowledge needed to detect and avoid AI-driven scams.

With generative AI advancing at a high speed, vigilance is crucial. Investors should remain skeptical of online financial opportunities and verify identities before engaging in transactions. As AI blurs the line between reality and deception, staying informed is the first line of defense.

Expect ongoing updates as this story evolves.

Source: Finance Magnates