1.5 AI-enabled Trading Scam

Related Articles

• Trading Bot Scams, Seon.io

• SEC Files Charges Over $14 Million Crypto Scam Using Fake AI-Themed Investment Tips, The Hacker News

• Elon Musk used in fake AI videos to promote financial scam, RMIT.edu.AU

• Example of AI-enabled fraudulent trading platform scam from DFPI, DFPI

Related Crime Schemes

A particular instance of this scam may embed one or more of these related schemes.

• Fraudulent Platform: Any scheme that relies on custom built software that assists the crime. Includes fraudulent trading platforms, fraudulent clickworking platforms, and the like.

• Ponzi: A ponzi scheme is a type of investment fraud in which the scammer (or "Ponzi") pays "dividends" to initial investors using the funds of subsequent investors.

• Pump-and-Dump: A pump and dump scheme is a type of investment fraud in which promoters falsely hype up a new or obscure stock so that new investors will rush to buy it, thus inflating the price (the "pump"), at which point the scammer sells their portion of the stock at these high prices (the "dump"), leaving the other investors with a worthless stock.

Victim Targeting Context

The scammer may use one or more of the following techniques to reach the victim.

• Advertising Approach: Victims may discover the scam by passively observing advertisements or pitches placed by the scammer, for example on social media or on search engines.

• Targeted Conversational Approach: Victims may be targeted due to statements they have made on social media that the scammer thinks make the victim a good target, or through communities they frequent including investment forums or dating apps.

Social Engineering: Psychological Manipulations

The scammer may use one or more of these psychological techniques to accomplish the scam.

• Celebrity: The scammer claims a celebrity endorsement in order to increase trust or interest from the victim.

• Codes or Jargon: The scammer will often use codes or technical jargon about finance or cryptocurrency to confuse the victim or to add legitimacy to the scam.

• Complexity: The scammer has a complicated story to explain the scam, or leverages scientific/economic complexity in order to confuse the victim.

• Easy Money: The scammer promises easy money or makes appeals designed to leverage victim's greed.

• Secret Knowledge: The scammer implies that the scheme is based on secret or hidden knowledge or tricks that only the scammer knows.

Social Engineering: Impersonation Techniques

The scammer may impersonate one or more of the following groups as part of the scam.

• Banking / Finance: The scammer impersonates a banking official or financial institution.

• Business or NonProfit: The scammer impersonates a business or nonprofit.

• Catfishing: The scammer creates a fictitious online profile or persona.

• Celebrity: The scammer impersonates a celebrity.

EBNF Definition

AD_1_5 = "AD", ("marketplace" | "socialmedia" | "otherAd" | "searchEngine" | "messagingApp" | "organicAd");

ART_1_5 = "ART", ("appMessages" | "image" | "imageAI" | "advertisements" |  "spoofedSender" | "socialMediaPosts"| "socialMediaProfile" | "websiteCode" | "websiteScreenshots" | "appCode" | "appScreenshots" | "cryptocurrencyAddress" );

CRIME_1_5 = "CRIME", ("fraudulentPlatform" | "ponzi" | "pumpdump");

CTA_1_5 = "CTA", ("replyOnApp" | "reply" | "URL" | "lookalikeURL" | "shortURL");

IMP_1_5 = "IMP", ("banking" | "business" | "catfish" | "celebrity");

PSY_1_5 = "PSY", ("celebrity" | "codesJargon" | "complexity" | "easyMoney" | "secretKnowledge");

TARGET_1_5 = "TARGET", ("advertisingTarget" | "passiveConversational" | "targetedConversational");

Scam_1_5 = "AI-Enabled Trading Bot Scam",
    "1.5",
    {TARGET_1_5},
    {AD_1_5},
    {ART_1_5},
    {CRIME_1_5},
    {CTA_1_5},
    {IMP_1_5},
    {PSY_1_5};