Is this AI investment opportunity a scam?

By Marissa Sollows, Director of Communications and Public Affairs at the New Brunswick Financial and Consumer Services Commission (FCNB)

As told to Jared Lindzon 

Here’s the answer to this week’s reader question.

I read a story about how, for a small amount of money ($300), a company will invest with AI and you can supplement your income. Is this a scam?

—Frank

Can you supplement your income with an online AI investment opportunity? 

This is absolutely a scam. 

There are a few red flags that jump out. The biggest one is that many fraudulent investment opportunities use that number, usually $300, or USD$250. It’s a relatively small amount and typically within the budget of a DIY investor. 

Often victims will make that initial investment and start to see the promised returns. They might even be able to withdraw those earnings, and so the scammers build confidence and trust. These are tactics to get you to give even more money. But when you try to withdraw that larger sum, you’re either ghosted by the platform and unable to contact them; pressured to put more money in because there’s another “great opportunity on the horizon you can’t afford to miss”; or told there are taxes and fees required to withdraw the money. 

The next big red flag is the mention of artificial intelligence. Often these pitches include some new tech people see in the headlines but don’t fully understand, like cryptocurrency, forex, green investments and even foreign real estate, to name a few. They try to build a story around whatever’s in the media and play on the fact that you don’t want to look dumb and admit you don’t understand it. Scammers will often play on emotions to try and get you to lower your guard. If you’re feeling pressured to act fast, if you’re feeling stressed or scared or excited, you’re less likely to make rational decisions or ask questions. 

Next is the promise of easy money. This particular ad only talks about supplementing your income, but often the offer comes with bigger, more unrealistic promises. If they were a legitimate provider, they would be required by law to disclose the risks associated with investing and they couldn’t make any claims of risk-free investments or guaranteed returns. 

If you want to verify an investment opportunity you found online, the best place to start is the Canadian Securities Administrators national registration. Institutions, individuals and even influencers and crypto platforms need to be registered with their provincial securities regulator to operate legally in Canada. 

You can also look for company information online. If it is legitimate there should be financial filings, news stories and earnings reports. You can even search the name of the company along with the word “scam” and see what comes up. 

If you ultimately determine that the company is fraudulent, you can go to the securities regulator in your province and let them know. At, FCNB, we work with law enforcement in Canada, and we have partnerships with other agencies around the world. You can also report the ad to the platform where you saw it to have it removed. 

The unfortunate reality is that these scams have become an epidemic. We know that most ads are filtered out by online platforms and yet we still see them everywhere, so the volume is enormous. It’s become a game of whack-a-mole for regulators: as soon as one is taken down another pops up. 

Artificial intelligence is also changing the landscape and making these scams look so realistic. It’s allowing scammers to reach more people in less time, and we’ve seen an influx of deepfakes, which use the likeness of a celebrity or politician to promote fake investment opportunities. 

When you come across an offer, always use your best judgement, look out for these red flags and do your research before giving out any money or personal information. 

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