BSEC cautions investors against AI-driven scams on social media
BSEC noted that scam groups are offering attractive but deceptive investment opportunities through social platforms to trick investors
The Bangladesh Securities and Exchange Commission (BSEC) has cautioned investors against fraudulent activities in the capital market, where scam groups are increasingly leveraging artificial intelligence (AI) to deceive people through social media platforms.
According to BSEC's Market Intelligence Department, fraudsters are sending enticing messages via WhatsApp and Telegram, luring investors with promises of high returns, and eventually defrauding them.
The regulator issued a warning yesterday, urging investors to remain vigilant against such scams.
Keep updated, follow The Business Standard's Google news channel
In a media release, BSEC noted that scam groups are offering attractive but deceptive investment opportunities through social platforms to trick investors. The commission strongly advised all investors to avoid falling for such schemes.
The cautionary notice also reminded investors not to engage in any securities transactions outside their own Beneficiary Owner's (BO) account and without using registered stockbrokers, merchant bankers, or portfolio managers. It stressed that having a BO ID is mandatory for capital market investments, and such accounts can only be opened through registered stockbrokers or depository participants.
BSEC further emphasised that investors must ensure all buy-and-sell transactions are accurately reflected in their own BO accounts. It urged investors to exercise maximum caution in their own interest.
The regulator also encouraged the public to report any fraudulent social media activities or irregularities related to the capital market to its Market Intelligence Department.
According to intelligence findings, scam groups initially gain the trust of investors by showing small profits. Once confidence is built, they entice victims into making larger investments by promising higher returns. Later, victims are told that the app they used to invest is experiencing problems and that additional money is required. After extracting extra funds, the scammers block the victims and disappear.
