Artificial intelligence is being used to create convincing fake investment platforms, celebrity endorsements and trading advertisements, exposing investors to fraudulent cryptocurrency and other financial schemes, according to an investor warning on AI-enabled scams by National Trading Standards (NTS).

The warning identifies deepfake videos, imitation financial companies and fabricated trading dashboards among the techniques used to persuade people to transfer money into fraudulent investment schemes.

The study, titled AI SCAM WATCHLIST; The top ten AI enabled scams posing a threat to consumers, and how they work, says scammers can use artificial intelligence to develop realistic-looking investment websites, trading platforms, financial adviser profiles, advertisements and personalised messages.

It warns that some schemes imitate genuine financial firms or use artificially generated videos showing celebrities apparently endorsing investment opportunities.

The use of artificial intelligence allows scammers to produce a range of promotional materials designed to make fraudulent investment opportunities appear legitimate.

According to the watchlist, fraudsters may create professional-looking websites and trading interfaces, supported by fabricated adviser profiles and personalised communications.

Some schemes also use chatbots to interact with potential investors and respond to questions, creating the impression that customers are dealing with an established financial services provider.

Fake account dashboards may display apparent investment balances and returns, while messages claiming that opportunities are available for a limited time are used to encourage quick decisions.

The watchlist identifies cryptocurrency, property, fine wines and other commodities as among the AI investment scams categories that may feature in unsolicited promotions promising high or guaranteed returns.

Artificial intelligence can also be used to manipulate the appearance and voices of well-known individuals. As a result, videos and advertisements showing celebrities endorsing investment products may not represent genuine endorsements.

The techniques make it increasingly important for investors to verify investment opportunities independently rather than relying on the appearance of an advertisement, website or promotional video.

The watchlist describes a process in which individuals are persuaded to make an initial investment, often starting with a relatively small amount of money.

In some cases, victims may receive what appears to be an investment return. However, the document says this payment can be a tactic intended to establish trust and encourage the individual to transfer larger sums.

Once confidence has been established, scammers may persuade investors to increase their contributions by displaying apparent profits on an online account dashboard.

The displayed balance should not be treated as proof that an investment exists or that the money can be withdrawn.

The document advises people who have already invested and become suspicious of a scheme not to send additional funds, even when an online dashboard appears to show that their investment is growing.

Instead, it recommends stopping further payments, seeking advice and reporting the suspected fraud.

The risks associated with fraudulent investment businesses extend beyond AI-generated advertisements and deepfake endorsements.

The AI scam watchlist recommends independently researching the investment, the company offering it and the financial adviser involved.

The watchlist identifies several practices that should prompt investors to investigate an opportunity before committing money.

These include unsolicited calls, messages and advertisements promoting investments with unusually high or guaranteed returns.

Other warning signs include celebrity endorsements that cannot be independently verified, pressure to make immediate decisions and online platforms displaying investment growth without independently verifiable evidence.

Investors should also be cautious when a company claims to represent a recognised financial institution but uses different contact details or directs customers to unfamiliar websites.

The watchlist recommends taking time to assess an opportunity and considering advice from an independent financial adviser identified through one’s own research.

Where money has already been transferred and fraud is suspected, the guidance is to avoid making further payments, seek advice and report the matter to the appropriate authorities.

The growing use of AI-generated promotional material creates additional challenges for people assessing investment opportunities online.

A professional website, convincing video or responsive chatbot does not independently establish that a financial company is legitimate or that an investment product exists.

Investors therefore need to look beyond digital presentation and examine the identity of the provider, the regulatory status of the business, the nature of the investment and the evidence supporting any advertised returns.

As AI tools become more accessible, independent verification and careful evaluation remain central to protecting personal finances from fraudulent investment schemes.