AI investment scams could cost billions, Munich police warn

Munich police have warned that scammers are using AI-generated celebrity adverts to promote fraudulent investments, with losses estimated at about €30 million a year in the city alone, BR reported.

Police, the association Sicher in München and the Bavarian consumer centre said on Tuesday that victims are often lured through social media adverts. The ads use AI to make well-known media personalities appear to recommend investments in cryptocurrencies or other assets.

People who respond may then be guided by supposed financial experts who encourage them to make repeated payments. They are directed to fake websites that show fictitious profits. Police say the actual losses across Germany could run into billions of euros, though the true figure is likely much higher than the estimate for Munich.

Investigators do not know who is behind the scams. The money is moved through several accounts abroad, making it difficult to trace the flows to the perpetrators.

Police advise people not to respond to investment adverts featuring celebrities, to limit the personal information they share and to check an investment carefully before paying. The Bavarian consumer centre offers an online Fake Check for investments, which displays warnings based on users’ answers. An evaluation found that 65 per cent of users had used the tool before making a payment, while almost a third had already paid.