CFTC's OCEO Issues New Advisory on Growing Use of Generative AI in Fraud

The U.S. Commodity Futures Trading Commission’s (CFTC) Office of Customer Education and Outreach (OCEO) has issued a new customer advisory, highlighting that generative artificial intelligence (AI) is enabling fraudsters to create convincing scams with increasing ease.

In the advisory titled Criminals Increasing Use of Generative AI to Commit Fraud, the OCEO outlines that criminals are leveraging AI tools to produce fake images, voices, videos, live-streaming video chats, social media profiles, and malicious websites designed to mimic legitimate financial trading platforms.

According to the advisory, fraudsters are using AI to create false identifications with seemingly convincing fabricated photos and videos. They are also exploiting the technology to falsify government and financial documents. A public service announcement from the Federal Bureau of Investigation (FBI) has echoed these warnings, emphasizing how AI-driven scams are being used in relationship investment scams.

“Fraudsters can use new technologies to mask their identities, not only in still photographs, say, in social media profiles, but also in video chats that alter their facial features and voices to match,” said OCEO Director Melanie Devoe. “Identifying real from fake can be difficult. The best defense is to never give money to people you only meet online.” 

The advisory provides specific actions people should take to protect themselves, including:

• Identify AI products by studying images and videos for distorted hands and other imperfections. Listen carefully to vocal inflections, tone, and word choices. 
• Tighten your social media account privacy settings to limit what others can learn about you or who can contact you. Do not respond to text messages, phone calls, or social media invitations from people you do not know. 
• Never send cryptocurrency or other assets to people you do not know or have met only online or over the phone. 
• Never share sensitive information with people you have met only online or over the phone.