Digital investment scams leverage AI and psychological tactics

Digital investment scams are becoming increasingly sophisticated by utilizing artificial intelligence (AI), social media, and psychological manipulation to deceive victims. In Malaysia, syndicates are exploiting the ‘Fear of Missing Out’ (FOMO) to pressure individuals into making rapid decisions. Recent reports indicate that two retirees lost approximately RM750,000 to fraudulent schemes, with one individual losing over RM500,000 of their retirement savings.

In Indonesia, scammers are employing linguistic psychological tactics to target both older users and digital natives. These methods include using fear-driven language to create panic—such as claiming personal data has been leaked—and using linguistic camouflage to mimic casual trends or formal authority. Scammers often impersonate official bank personnel or e-commerce representatives to gain trust through WhatsApp, e-commerce chat features, and fake delivery notifications.