CFTC Virtual Event to Focus on Investment Scams and AI

Fraud in the digital age will be the focus of an upcoming virtual event hosted by the Commodity Futures Trading Commission (CFTC).

The event, “Technology and Fraud: Stopping Scams in a Digital World,” is scheduled for Oct. 4, the CFTC said in a Monday (Sept. 25) press release. Registration is now open for the event, which is free and open to the public.

Held as part of World Investor Week, a global initiative aimed at promoting investor education and protection, the event will feature two panels of experts discussing important topics related to fraud in the digital age.

The first panel, “Exploring Effective Social Media Investment Scam Interventions,” will focus on understanding why social media platforms are increasingly targeted by fraudsters. The panel will review current fraud trends, including romance scams and digital commodity-related frauds, and discuss the mechanisms that enable fraud targeting on social media.

Dan Rutherford, associate director of the CFTC’s Office of Customer Education and Outreach (OCEO), said in the release: “Social media enabled fraud is nothing new, but many may not be aware how fraudsters can leverage these platforms and other methods to draw smart, rational people into bad decisions.”

The second panel will be “Is AI for Investors Road-Ready?” and will delve into the role of artificial intelligence (AI) in the financial services industry. Experts will address questions about the readiness of AI to take on important financial tasks, what investors should be cautious of, and how to identify and avoid scams.

Jorge Herrada, director of the CFTC’s Office of Technology Innovation (OTI), said in the release: “Like any fast-moving technology, education is critical to understand the capabilities of AI, when it is appropriate to use, and how to avoid being scammed.”

Emerging technology, cybersecurity and environmental fraud are among the issues at which the CFTC has been taking a closer look. The regulator announced in June that it formed two new task forces comprised of attorneys and investigators who will focus on these challenges.

“We must be dynamic and proactive in protecting derivatives markets against evolving threats,” CFTC Chairman Rostin Behnam said when announcing the formation of the task forces.