The Securities and Exchange Commission (SEC) has issued a strong warning to the public to remain vigilant and avoid falling victim to emerging fraudulent investment scams, particularly those leveraging artificial intelligence (AI) technologies.
In a statement released on Friday, July 25, 2025, the SEC cautioned that the Commission does not license these schemes and are deliberately designed to defraud investors.
According to the SEC, a rising number of scammers are now using AI to manipulate voices, videos, and facial features—often impersonating well-known public figures to promote fake investment opportunities. These deceptive tactics are intended to build false trust and lure unsuspecting individuals.
The Commission highlighted several warning signs that the public should watch out for, including:
The unauthorised use of names or images of prominent personalities, including government officials, regulators, and business leaders.
Promotional content that mimics authentic endorsements using fabricated audio or video clips.
Anonymous operations on social media and digital platforms, with no verifiable licenses, physical addresses, or credible contact persons.
Promises of extremely high returns within an unreasonably short period—an often-used bait in fraudulent schemes.
The SEC stressed that such operations are difficult to trace or hold accountable due to their anonymous and decentralised nature online.
To combat this growing threat, the Commission affirmed that it is collaborating with law enforcement agencies to investigate and dismantle these fraudulent networks and to protect the interests of the investing public.
The SEC urges all individuals to verify the legitimacy of investment opportunities by consulting its list of licensed entities and to report any suspicious activity immediately.
