Investment scams have always been around us. Whether it’s a pyramid scheme claiming you can make infinite money, a new crypto coin, or a forex trading bot that can turn $100 into $1000 in one week.
The common denominator between investment fraud is that you can make loads of money quickly, with low risk. They’re all around us. Social media ads, friends from high school, relatives, texts, dating apps, or even emails from a random person are the most common channels.
Now, there’s a new technology coming into the mix – artificial intelligence. Scammers who made grammar mistakes now use ChatGPT to craft compelling messages to lure people in. Forex traders claim to use AI technology to monitor markets and make trades. The line between real and fake is slim, and investment scams are getting more difficult to spot. Here are a few tips to help you out.
Protecting yourself from AI technology advances and investment scams involves being informed, cautious, and vigilant. Here are some essential steps you can take:
1. Educate Yourself about AI Technology:
Understand the basics of AI and its applications. Being informed about how AI works, its limitations and potential risks will help you recognize genuine opportunities from fraudulent claims.
This is a common saying in the investment world. Don’t put your money into anything on a whim. It doesn’t matter if your parents, friends, spouse, or kids tell you. Spend an hour of your time (preferably more) deeply researching the topic.
If it’s a new company, check for the legal headquarters. Look for reviews. Search on Google for the target company and add words like ‘scam,’ ‘complaint,’ and ‘scheme’ at the end, and check the results. If there aren’t any reputable websites talking about the company, it’s a fake one.
Never trust influencers, YouTube videos, and Twitter bots for advice. They are paid actors, and the recent crypto bubble showed just how easily celebrities and influencers sell out their audiences.
On top of that, check the APY, ROI, and referral programs. Then, whip out a calculator and check what’s going to happen if the company keeps those numbers for a year or three years.
For example, AI forex scams offer a 2% profit on your money every day. If you put in $100, the next day, you’d have $102, then $104.4, and so on. Well, when you extend that over a year, you’d have $140495. In two years, you’ll have $200 million. That’s a definite scam. It’s small subtleties like 2% profits daily that make scams so lucrative.
2. Research Investment Opportunities Thoroughly:
Before investing in any AI-related project or company, conduct extensive research. Look for reputable sources, reviews, and news articles to assess the legitimacy of the investment opportunity.
Check the legitimacy of the company offering the investment opportunity. Look for information about the company’s history, founders, team members, and physical address. Visit their official website, social media pages, and any online presence to gauge their credibility.
Search for independent reviews and opinions about the AI investment opportunity. Look for articles, blog posts, or reports from reputable financial analysts or industry experts. Seek both positive and negative perspectives to gain a balanced view.
Every investment carries some level of risk. Evaluate the potential risks associated with the AI investment opportunity. Consider factors like market competition, technology viability, regulatory challenges, and the company’s track record in managing risks.
#3. Secure your devices
If you’re constantly researching investments or following personal finance sites, scammers will try to target you. They see anyone interested in the niche as a potential target, so you must protect your devices. Install an antivirus to safeguard against malware.
Use a VPN to hide your IP address, block trackers, and encrypt your data. If you’re asking AI for advice, use a VPN for ChatGPT because it had privacy concerns a few months ago. Add an ad blocker on top of that to safeguard against scam ads, and you’ll be good to go.
#4. Stay Updated on Scam Alerts
Keep yourself informed about the latest scam tactics and fraud alerts related to AI technology and investments. Regularly check with reputable financial websites or government agencies for updates on potential scams.
#5. Don’t believe guarantees and promises
If an email, ad, online date, or website is claiming you can get guaranteed returns on investment, run in the opposite direction. No one can predict the markets. Anyone who claims they have a special bot or generative AI tool that can is a scammer.
#6. Seek Professional Financial Advice
If you’re considering significant investments in AI or any other area, consult with a trusted financial advisor. They can provide valuable insights, help you assess risks, and guide you towards sound investment decisions.
#7. Inform High Authority
Not everyone is great at catching scams. Agreeable people are more likely to fall for money schemes. So if you know a friend, family member, or colleague, mention the newest scam and tell them not to trust it. And make sure to report it to the FTC.
If you encounter suspicious AI-related investment offers or believe you have come across a scam, report it to the appropriate authorities or financial regulatory agencies. Reporting scams can help prevent others from falling victim to fraudulent schemes.
By following these detailed points and staying vigilant, you can protect yourself from potential risks associated with AI technology advances and investment scams. Remember that knowledge, skepticism, and caution are your strongest defenses in navigating the dynamic landscape of AI and investments.