Fraudsters are using the hype of new technology, specifically artificial intelligence (AI), to commit fraud on consumers. The same bad guys are just spinning buzzwords to develop new schemes to take advantage of consumers.
This week, the Federal Trade Commission (FTC) announced that it took enforcement action against five companies “that use AI hype or sell AI technology that can be used in deceptive and unfair ways” through its enforcement sweep called Operation AI Comply.
The facts detailed in the FTC’s complaints against the companies reveal how fraudsters are taking advantage of consumers with promises of making big money that can’t be met and, in some cases, defrauding consumers out of millions of dollars. Reading the complaints and understanding how these schemes work is an effective way to prevent becoming a victim of a similar fraud. The message behind the enforcement actions is to stay alert of promises that are too good to be true. This is an old message, but fraudsters are using AI’s hype and promise to catch consumers flat-footed. Stay alert about claims of big money through the use of AI, especially if you are required to pay any money upfront to reap the benefits.