Spanish authorities have shut down a sophisticated investment scam that used artificial intelligence to defraud victims of more than $20 million. The operation, which spanned multiple countries, lured investors with promises of high returns through a fake AI-driven trading platform.
The National Police arrested four individuals and identified 14 others linked to the scheme, which used aggressive marketing tactics and fake online platforms to simulate trading activity. Victims were shown fabricated profits generated by what was advertised as an advanced AI algorithm capable of outperforming the market.
Once trust was established, the scammers convinced users to invest larger sums, only to block access to their funds when withdrawal requests were made. Authorities revealed that the network operated through a network of shell companies and call centers, targeting victims across Spain and other European countries.
The investigation uncovered nearly 300 victims, though officials believe the real number could be significantly higher. Spanish police worked in coordination with international agencies to trace the scam’s financial flows and dismantle its digital infrastructure.
This takedown highlights growing concerns over AI being exploited in financial frauds and the increasing need for cross-border collaboration to combat tech-enabled scams.
