The US Securities and Exchange Commission has recently released a high alert to investors on the growing cases of cryptocurrency scams especially those using AI solutions. The SEC clearly warned the public that since fraudsters are aware that most people are into artificial intelligence, they are most likely to use artificial intelligence to carry out their misdeeds.
Some kinds of fraudsters are also utilizing AI to create fake identities and impersonate government agencies as well as celebrities like Brad Garlinghouse, the CEO of Ripple company. According to the SEC, such actions help scammers deceive investors.
The notice also signifies the dangers of getting involved in crypto investment based on information earned online from the internet and social media. Fraudsters tend to establish a rapport with the target through interactive communication media in order to develop trust before introducing fake investment schemes. The SEC cautions people against sharing their financial details with strangers on the internet.
The warning issued by the SEC shows that investors in cryptocurrencies should research and carefully select the best coins to invest in.
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