As fraudsters increasingly adopt artificial intelligence (AI) to deceive investors, an edgy new campaign from the BC Securities Commission (BCSC) seeks to help British Columbians understand how to avoid becoming a victim to AI investment scams.
From chatbots to deepfakes to fake reviews, AI is has become a common tool to lure and deceive investors by making it more difficult for investors to distinguish fact from fiction. According to new research from the BCSC, 71 per cent of British Columbians are worried about AI technology being used in investment fraud, and over half are unsure of where to look for information about AI investment scams.
The BCSC’s latest fraud prevention campaign, “We’re Not All F**ked,” acknowledges the anxiety many individuals are feeling about AI while encouraging British Columbians to pause, scrutinize and think critically before investing. An anthemic music video details the insidious ways in which AI is being used in investment scams, and our new microsite, avoidAIscams.ca, offers unbiased tips and information for investors to identify and protect themselves from AI investment scams.
Canadians lost a staggering $530 million to fraud and cybercrime in 2022, a 40 per cent increase from 2021, according to the Canadian Anti-Fraud Centre. The real cost is likely much higher, because only 5 to 10 per cent of victims report fraud, the centre says.
“AI is a new tool for fraudsters to use to deceive investors, but the warning signs are much the same as other types of investment fraud,” said Pamela McDonald, the BCSC’s Director of Communications and Education. “You are the first line of defense. So it’s more important than ever that you pause, think critically, and do your own research before investing.”
British Columbians can protect themselves from AI investment scams in various ways:
- Look for warnings from securities regulators (for example, see the BCSC’s Investment Caution List) and negative reviews. Remember – positive reviews can be faked.
- Use the National Registration Search to make sure the company or person you’re dealing with is legitimate and registered to buy and sell investments.
- Check that a company’s phone number matches the one listed on the National Registration Database. Call the number to make sure.
- Confirm someone is who they say they are. Meeting them in person is one way to do this, but be safe.
- AI isn’t the only tool scammers use to defraud investors. Report suspicious activity to the BC Securities Commission.
British Columbians should watch out for red flags of any investment scam, including claims of guaranteed high returns with no risk, pressure to commit quickly, unanswered questions, or exploitation of family, friendship or social connections to create a sense of trust.
Learn more about AI investment scams at InvestRight.org
