The U.S. Securities and Exchange Commission (SEC) has once again underscored the dangers of cryptocurrency scams in its recent social media post. The warning describes various fraud schemes used by bad actors to deceive investors.
SEC Warning
The SEC published a new version of its crypto scam warning, which was originally posted in May. It notes that fraudsters often use social media to establish trust with potential victims before pitching investment opportunities. Sometimes, bad actors pose as insiders.
Scam Schemes
One example is the 'pig butchering' scheme, where scammers gain victims' trust and then offer fake investment opportunities. Recently, there has been an increase in such schemes using AI, which allows altering famous voices for fake live streams. For instance, a fake live stream with Apple CEO Tim Cook recently gained traction on YouTube, promoting a fake cryptocurrency giveaway.
Role of AI in Scams
The advancement of AI technology allows fraudsters to more frequently use the latest developments to create more realistic scams. For example, AI can alter the voices of famous people, which enabled a fake live stream featuring Tim Cook to attract significant attention.
The recent SEC warning highlights the importance of cautious approach to cryptocurrency investments and the necessity of conducting due diligence before investing. Investors are advised to remain vigilant and informed about current scam schemes.
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