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AI-Powered Scams: How Computer-Generated Experts Fleece Investors

Financial Times Markets •
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An elaborate network of computer-generated scams, exemplified by the fake financial advisor Sebastian Hatherleigh, is defrauding investors using AI-manipulated identities and fake social media personas. These sophisticated operations, often run by international criminal groups, create a veneer of legitimacy through fabricated press releases, AI-generated images, and fake accounts on platforms like WhatsApp and TikTok. 558 ads promoting Hatherleigh's services ran on TikTok last September, targeting UK and Swiss investors, while Chinese company Xiamen Younan was linked to the campaign. The scams begin innocuously, with fake experts posting market insights in WhatsApp groups, building trust before pushing investors into illiquid small-cap stocks they secretly own, creating artificial price pumps. This tech-enabled pump-and-dump scheme relies on generative AI to bypass traditional safeguards and exploit platform failures, demanding greater public skepticism and cross-industry cooperation to combat these evolving threats.