AI Trading Scam – What is it and How to Recognize It On Time

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The public’s interest in AI-powered trading software has never been this evident. Beginner investors are especially absorbed in finding ways to achieve trading success without having sufficient trading knowledge or experience.

That’s the biggest trap related to the wrong image that we have about AI Forex trading, which is still in its infantile stage. The need for facilitated trading that novices have drives them to look for solutions that do not represent something realistic or at least something not as lucrative as marketed. 

Lacking the trading wisdom to properly choose, novices are subject to false advertising that fraudsters employ, in order to attract potential victims. Led by the idea of quick profit with little to no effort needed, that’s when inexperienced traders become easy targets of the AI trading scam. 

Trading with the usage of AI (artificial intelligence) was meant to assist traders of all knowledge and skill levels. This advanced technology is based on employing computer algorithms, machine learning, and other complex programming processes. The main purpose is to enable traders to scan the market for new changes and opportunities without having to stare at the computer screen for hours. 

In that sense, trading with AI could also facilitate the tiring market analysis process, which robots do in a matter of seconds. Human traders could take hours to perform tasks that AI is able to process in far shorter periods of time. 

What is also characteristic of human traders, especially those who are less skilled, is the involvement of stress and other emotions in their decision-making. Even well-trained Forex veterans can sometimes subject themselves to reckless decisions, influenced by their built-up stress, which could affect the risk control. 

By eliminating that important factor by employing an AI tool, we are able to significantly improve the quality of our trading decisions while at the same time managing risks better and avoiding unpredicted human behavior.  

It isn’t all that surprising to see advertisements online talking about thousands of percent bigger profits than what is invested, thanks to the usage of AI. Furthermore, scammers also tend to try to convince their victims that no previous experience or even basic knowledge of trading is necessary to achieve investment goals. 

Naturally, all of the mentioned cases are false advertising that fraudsters use to lure in new victims. Take a look at some of the most common tactics that abuse our interest in AI trading technology. 

Trading bots have their pros and cons. Of course, swindlers will advertise their trading tools as something revolutionary and innovative, although that can’t be any further from the truth. 

Fake trading bots range from simplistic tools that do not operate as promised to whole trading software and platforms. These are supposed to be able to conduct the entire trading process instead of investors, but they usually disappear or are discontinued as soon as they steal enough deposits.

It is understandable why trading bots make the life of a trader easier. After all, they’re fast, can conduct many processes at once, and they never have to sleep. That’s only if we assume that they were developed properly and can actually facilitate the hard work. If not, they can financially ruin the trader in a matter of minutes.

For example, Bitcoin360 AI offers fictitious software that is an alleged AI investing app that facilitates investing but only eats up deposits. 

Illicit brokerage platforms often claim to be able to equip investors with extraordinary algo trading tools that are allegedly able to generate guaranteed profit. The return on investment is sometimes promised to be thousands of times bigger than the initial deposit, which is something every Forex investor dreams about. 

To support the illusion, cons also provide incentives that motivate victims to invest large sums of money at once. These always come with strings attached, so make sure you avoid them. 

While passive income seems like a great idea to everyone, it’s crucial to have realistic expectations and always double-check the provider of these services. If not strictly regulated and with a Tier 1 trading license, your broker-dealer may be the next scammer. Immediate Edge is definitely one such firm.

One sophisticated scam strategy involving AI is certainly the ability to create artificial videos, also known as deepfake videos, of celebrities advertising certain products. When the targeted audience sees videos in which their favorite celebrity or entrepreneur promotes a product, they’re more likely to buy it. 

An abundance of recently created deepfake videos and audio creations involve CEOs of various companies allegedly announcing some revolutionary software. Quantum AI used AI to fake their connection to Elon Musk, for example. Naturally, this has a huge impact on the audience and can manipulate a large number of consumers to buy, support, or invest in a project otherwise.

That is not all, however. Some criminal organizations go even further. They create deepfake videos of family members saying their children, grandchildren, and cousins are in distress, sick, or need urgent financial help for any other reason. 

As profitable as all AI stock trading and other offers may sound, they’re also a significant source of threat and risk to your financial stability and future. 

Here are some general steps to always take in order to protect yourself:

While prevention is the best cure, there’s always AI trading fraud meant to lead investors into financial disdain. 

Whether the offer seemed too attractive to be rejected or victims were manipulated emotionally based on their connection to loved ones, scams happen on a daily basis to thousands of people globally. The majority of the defrauded actually find themselves stranded without help or even hope of recovering stolen funds.

That’s when you should consider contacting us. With the help of a software solution, experience, and knowledge, our legal professionals can advise and support you on your journey of recovering stolen investments. All you have to do is contact our chat agent and book your free consultation.

The post AI Trading Scam – What is it and How to Recognize It On Time appeared first on Global Fraud Protection.

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