Regulators warn of rising AI-driven investment fraud

Regulators across six continents are warning of a rise in sophisticated investment scams, particularly those leveraging artificial intelligence and social media. As part of the 10th annual World Investor Week, promoted by the International Organization of Securities Commissions (IOSCO), authorities are highlighting how digital tools are making fraud cheaper, faster, and harder to detect.

In Ghana, the Securities and Exchange Commission (SEC) noted that fraudsters are using AI-generated videos, deepfake endorsements, and cloned investment applications to create a false sense of legitimacy. These schemes are often promoted via platforms like TikTok, WhatsApp, and Telegram, promising guaranteed daily returns to reach thousands of victims at minimal cost.

Global warnings also emphasize relationship investment fraud and impersonation. Scammers may pose as friends, financial professionals, or regulators to gain access to passwords and cryptocurrency wallets. Some tactics include allowing small initial withdrawals to build trust before blocking access to larger sums of money. Regulators urge investors to utilize official educational resources to remain vigilant against these evolving digital deceptions.