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Online trading fraud is becoming a global scourge
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For mainstream finance, online trading scams are becoming a reputational risk that’s no longer confined to the sidelines.
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Online trading fraud is a rapidly growing global problem. The Federal Bureau of Investigation estimates that such scams stole about US$6 billion (S$8 billion) in the United States and rich European nations alone in 2022. Tackling the gangs is difficult because they work across borders and change the forms of their deceptions frequently to evade detection.
In these types of crimes, victims are lured to click on enticing Internet advertisements, which often borrow credibility from a well-known figure. A recent example targeted at Germany used fake news about investor Elon Musk quitting Tesla to run an artificial intelligence investment firm.
