Introduction: The Rise of AI and the Scammers Who Followed
Back in the late 1990’s and early 2000’s, many of us would be regularly receiving email messages from “Nigerian Princes” promising riches. They were known as “419 Scams”‘ from the Nigerian penal code section related to mail fraud. I do remember trying to reverse one such scammer to get a picture of him, but was unsuccessful.
Skip forward to the 2020’s and artificial Intelligence has revolutionized industries, powered new business models, and created real wealth opportunities. Of course, the scammers are still out there working hard to separate you from your hard-earned money. As AI becomes more mainstream, so do the scams that ride its coattails, and these scammers have adapted. If you’re exploring AI to grow your business or income, beware: not all AI “opportunities” are legitimate. In this post, I’ll expose five of the most common AI money scams making the rounds in 2025, and show you how to protect your time, wallet, and reputation.
One thing that I saw recently is “Deepfake” scams becoming more prevalent. These scams present an AI generated image of a famous personality attempting to convince you to buy into the scam. See the image below for an example using Elon Musk’s image.
Scam #1: Fake AI Trading Bots
One of the most rampant scams involves so-called AI-powered trading bots. These bots claim to use advanced algorithms and machine learning to predict stock market trends or cryptocurrency movements with 90%+ accuracy. They promise high returns with minimal risk.
Red Flags:
- Promises of guaranteed profits.
- No transparency about how the algorithm works.
- Unregulated platforms with no verifiable history.
I saw there was a platform named “Quantum AI Trader” that promised overnight riches. However, it turned out to be a front for phishing scams and fake trading dashboards. Many users reported losing their deposits overnight.
The Quantum AI trader bot scam is a type of dangerous fraud scheme that exploits people’s interest in AI and cryptocurrency trading. The scammers use sophisticated tactics including deepfake videos of celebrities like Elon Musk and Mark Cuban appearing to endorse the platform. These fraudulent operations typically promise unrealistic returns, claiming their “quantum AI technology” can generate extraordinary profits of 10% or more daily with no risk. The scam first emerged in early 2023 and spread through social media using AI-generated videos and fake testimonials. Victims were lured in through professional-looking websites and aggressive marketing, but ultimately could not withdraw any funds they deposit. Multiple cybersecurity experts have raised red flags about this type of elaborate scheme that preys on people’s fear of missing out – FOMO – on technological breakthroughs. I always argue that the best protection against these scams is to be extremely skeptical of any trading platform promising guaranteed high returns, especially those using buzzwords like “quantum” and “AI” to appear legitimate.
How to Protect Yourself:
- Only use AI trading tools from well-established, regulated platforms.
- Look for third-party audits or open-source code.
- Be wary of aggressive marketing and affiliate pushers.
Scam #2: AI Content Automation Packages That Overpromise
With ChatGPT and other AI writing tools becoming popular, scammy service providers are bundling “AI content automation kits” that claim to generate SEO-optimized blog posts, YouTube scripts, and social media content that will go viral or rank #1. My website is made using a mix of human generated content (me) and AI content. I do use artificial intelligence to generate images and provide an outline for my posts, but the real writing comes from me. It is this simple – AI content cannot look real – yet.
So, these “AI Content Automation Package” scams have become increasingly prevalent, targeting entrepreneurs and small business owners with grandiose promises of “fully automated” content creation. These schemes typically sell expensive “turnkey” packages claiming to generate unlimited, high-quality content across multiple platforms with “zero human input required.” Red flags I’ve seen include promises of “100% unique and undetectable AI content,” guaranteed high search rankings, and claims of proprietary AI technology that outperforms known models like GPT-4. Yeah, not gonna happen.
Victims often pay thousands for what turns out to be basic template collections, recycled content, or access to publicly available AI tools repackaged with flashy marketing. Many of these packages also violate platform terms of service or copyright laws, putting buyers at risk. The reality is that effective AI content creation still requires human oversight, strategic planning, and authentic engagement – there’s no magical “set and forget” solution. When evaluating AI content tools, remember: if it sounds too automated to be true, it probably is.
Red Flags:
- No customization or human input.
- Promises of top search engine rankings within days.
- Vague testimonials and no real portfolio.
I’ve seen downloadable “instant articles” packages for up to $599, promising instant resources. I’ve read that all the content was plagiarized, spun garbage. If I used it, I’d be penalized by Google.
How to Protect Yourself:
- Vet the provider’s portfolio and ask for writing samples.
- Avoid providers who don’t combine human editing with AI.
- Use trusted tools like Jasper, ChatGPT, or Koala Writer and do your own quality control.
Scam #3: AI Investment Ponzi Schemes
This classic scam gets an AI rebrand. Fraudsters claim they’ve built a proprietary AI that identifies lucrative investments or arbitrage opportunities. Investors are promised double or triple-digit returns, with early participants allegedly earning big payouts.
From what I’ve seen, AI Investment Ponzi Schemes have emerged as a dangerous new frontier in financial fraud, particularly in the cryptocurrency and trading spaces. These scams exploit the buzz around artificial intelligence by claiming to use “proprietary AI trading algorithms” or “quantum AI technology” to generate unrealistic returns, often promising 100% profit in just 30 days through supposed AI trading.
A recent example is the CBEX scheme, which collapsed after defrauding approximately 600,000 investors of $800 million by claiming their AI trading platform could deliver guaranteed returns. These operations often gain credibility by obtaining official registrations and conducting charity work as smokescreens. They typically use sophisticated marketing tactics, including sleek websites, cryptocurrency buzzwords, and social media influencers to appear legitimate.
The SEC and other regulatory bodies have been actively warning investors about these schemes, with new legislation in some countries now imposing severe penalties – including 10-year jail terms and substantial fines – for operators of such scams. The key warning signs include promises of guaranteed high returns, heavy emphasis on recruitment, and pressure to “act fast” on AI-powered investment opportunities.
Red Flags:
- Referral bonuses for recruiting others.
- Lack of financial transparency or legal registration.
- Pressure to “get in early.”
Real Example:
Fraudsters are working overtime, luring investors via social media. The companies abruptly vanish with millions in Bitcoin, leaving thousands without recourse.
How to Protect Yourself:
- Research the team and company registration.
- Ask for audited financials.
- Avoid any program emphasizing recruitment over product or service delivery.
Scam #4: Fake AI Job Offers and Freelance Projects
As AI freelance work booms, scammers have adapted. Fake clients offer high-paying jobs to write AI prompts, edit outputs, or provide “AI coaching.” But they often ask for upfront payments, such as “training fees,” or steal your personal information. Based on recent investigations, scammers are increasingly leveraging AI tools to create sophisticated fake job offers and freelance projects. These fraudsters use AI to generate convincing job descriptions, company profiles, and even conduct video interviews using deepfake technology. The scams often target remote workers and freelancers with too-good-to-be-true offers, including high salaries for minimal work or upfront payment promises. According to recent data, over 1 in 2 job seekers (54%) have encountered such scams, with remote and hybrid roles being particularly targeted (58% and 57% respectively). The scammers often use AI-generated recruiter chats (34%) and even voice-cloned interviews (6%) to appear legitimate. Their ultimate goal is typically to collect personal information for identity theft, convince victims to pay for fake training or equipment, or use them as money mules for money laundering schemes. The sophistication of these AI-generated scams makes them increasingly difficult to detect, as they can now mimic legitimate company communications and professional networking almost perfectly.
Red Flags:
- Requests for money upfront.
- No contract or verified client history.
- Poor grammar or generic job descriptions.
Freelancers on sites like Upwork and Fiverr reported fake clients offering AI writing gigs. After requesting payment for “training materials,” the scammers take off and are never heard from again. These scammers are increasingly leveraging AI tools to generate convincing job descriptions, company profiles, and even conduct video interviews using deepfake technology. The scams often target remote workers and freelancers with too-good-to-be-true offers, including high salaries for minimal work or upfront payment promises.
According to recent data, over 1 in 2 job seekers (54%) have encountered such scams, with remote and hybrid roles being particularly targeted (58% and 57% respectively). The scammers often use AI-generated recruiter chats (34%) and even voice-cloned interviews (6%) to appear legitimate. I get one or two messages a week through both text message as well as in email. Their ultimate goal is typically to collect personal information for identity theft, convince victims to pay for fake training or equipment, or use them as money mules for money laundering schemes. The sophistication of these AI-generated scams makes them increasingly difficult to detect, as they can now mimic legitimate company communications and professional networking almost perfectly.
How to Protect Yourself:
- Never pay to get a job.
- Use platforms with escrow and verified payments.
- Vet the client’s online presence and ask detailed questions.
Scam #5: AI Course Scams with No Real Value
The popularity of AI education has led to an explosion of shady online courses. I am actually working on an online Artificial Intelligence course, so am very aware of these scams. Some promise to make you an AI expert in 24 hours or offer “secret” income blueprints using AI. These courses are often regurgitated fluff with no support or practical value. The scammers use AI to generate entire course curricula, fake instructor profiles, fabricated testimonials, and even AI-voiced video lectures.
Meanwhile, scammers are defrauding universities and State governments by enrolling AI bots in classes to collect the student aid. They are particularly prevalent here in California, where we have a state-funded community college system, which allows for anyone to enroll. These scammers are “enrolling” AI bots to online courses and collecting student aid, thus pushing out spaces for actual students.
The courses often promise unrealistic outcomes like “guaranteed six-figure income” or “master any skill in 7 days.” Community colleges have been particularly hard hit, with AI-generated “bot students” using these fake courses to swindle roughly $6.5 million in student aid from September 2021 through December 2023. The scammers create convincing course materials using AI tools, complete with professional-looking slides, worksheets, and certificates. Red flags include extremely low prices for typically expensive certifications, vague course descriptions filled with buzzwords, and pressure to “enroll now” for limited-time discounts. The scams often target high-demand fields like coding, digital marketing, and cryptocurrency trading, where students are eager to gain quick skills for career advancement.
Red Flags:
- No clear course outline or instructor bio.
- Massive discounts with countdown timers.
- Claims like “zero effort passive income.”
A course called “AI Income Secrets 2025” went viral on TikTok recently. It turned out to be a collection of free YouTube videos repackaged and sold for $497. I purposely did not link to the video for obvious reasons.
How to Protect Yourself:
- Check for reviews on Reddit, TrustPilot, or CourseReport.
- Research the instructor’s real-world credentials.
- Stick with platforms like Coursera, Udemy, or LinkedIn Learning. I subscribe to each of these sites and find them very helpful.
Bonus Tips to Spot AI Money Scams Fast
- Verify Claims: Look for proof or case studies. If there’s no transparency, there’s likely deception.
- Check for Overhyped Language: Words like “guaranteed,” “secret AI hack,” or “overnight success” are red flags.
- Use Whois Lookup Tools: Check domain age and ownership. Scam sites are often newly registered.
- Watch for Fake Testimonials: Run profile photos through reverse image search to detect stock photos or stolen identities.
- Follow the Money: Ask how the company really makes money—if it’s unclear, it’s probably a scam.
The Real Way to Make Money with AI
AI can absolutely be a source of income—if you do it right. Legitimate strategies include:
- Offering AI-enhanced services (e.g., copywriting, analytics, automation).
- Building tools or apps using AI APIs.
- Creating faceless YouTube channels using AI-generated scripts and voices.
- Running AI-automated eCommerce or print-on-demand stores.
For a full list of real ways to earn with AI, check out my AI Business Guide.
Conclusion: Stay Smart, Stay Safe
AI is not a magic money machine. Like any powerful tool, it requires knowledge, strategy, and effort to yield results. The scammers know this and are banking on your excitement or fear of missing out. By learning how these scams work, you can confidently pursue real AI opportunities without falling prey to fraud.
To protect yourself from AI scammers online, always approach opportunities with healthy skepticism and follow essential safety practices. First, verify the legitimacy of any business or individual through multiple independent sources – not just their website or social media presence.
Be extremely wary of opportunities promising unrealistic returns, “guaranteed” results, or requiring upfront payments. Remember the old adage – if it sounds too good to be true, it probably is a scam.
Also, never share sensitive personal or financial information without thorough verification, and be particularly cautious of urgent demands or pressure tactics. Watch for red flags like AI-generated profile photos (look for telltale signs like asymmetrical features or bizarre backgrounds), unusually perfect grammar in messages, or inconsistencies in communication styles. For example, take a look at the soccer player below. I had ChatGPT generate it. Notice that the player’s left sock and shoe don’t match the right sock and shoe. Otherwise, the image is great.
Next Steps
So, what are your next steps to avoid scams? Aside from what I mentioned above, you can do the following: Use secure payment methods and avoid wire transfers or cryptocurrency payments to unknown parties. Keep detailed records of all interactions, and report suspicious activities to relevant authorities like the FTC or FBI’s Internet Crime Complaint Center (IC3). Remember: if an opportunity seems too good to be true, it probably is – especially in the fast-moving world of AI technology where scammers constantly evolve their tactics.
Ready to build a real business using AI—not fall for the hype? Subscribe to my YouTube site at The AI Connection for monthly updates, tools, and proven strategies to help you navigate the AI frontier safely and profitably. I promise to never spam you with unsolicited offers .
Stay informed. Stay empowered. Stay scam-free.