Red flags and scams

AI-trading scams are not new. The technology label changes every cycle — high-frequency, blockchain, AI — but the structure does not. Almost every scam in this space combines three elements: a guaranteed return claim, a friction-free deposit and a friction-heavy withdrawal.

The first red flag is the return promise itself. A specific, guaranteed daily or weekly return — “2% per day, every day” — is the single most reliable indicator of fraud. Real strategies have variance. Anyone promising a fixed positive number is either lying or running a Ponzi.

The second is regulator absence. The site claims to be “EU-licensed” but no entity name appears, the licence number is fake, or the named regulator does not regulate the products being marketed. The fix is mechanical: copy the licence number into the regulator’s public register and confirm the legal entity, the products covered and the warning history.

The third is asymmetric friction. Deposits are instant, deposit limits are high, and the salesperson is helpful. Withdrawals require additional documents, additional deposits to “unlock” them, or a wait time that grows the more you ask. This pattern is the operational signature of a recovery-style scam.

Two contemporary variants are worth naming. The “AI bot” bucket-shop typically wraps a normal-looking dashboard around a back-end that does not actually trade — the displayed P&L is fictional. The “recovery” scam targets victims of the first scam, claiming to be lawyers or specialists who can recoup lost funds for a fee.

Default protection is simple. Verify the regulator. Test withdrawals with a small amount before scaling. Refuse any pressure tactic — including time-limited bonuses, account managers, or guaranteed performance. Report anything suspicious to your local regulator and to action-fraud equivalents in your country.