Scam watch: AI scams to know about
Scammers use AI hype to sell fake tools and get-rich-quick schemes. Here are patterns to watch for, each with an official source. New entries go at the top.
"AI-powered passive income" online stores
The pattern: Schemes that charge large upfront fees with promises that AI-run online stores will earn big monthly income.
In Operation AI Comply (September 2024), the FTC alleged that several schemes charged people thousands of dollars or more with promises that AI-powered online stores would bring in big monthly income, and that for nearly all customers the promised income never came.
How to spot it
- Guaranteed or "risk-free" monthly income.
- Fees in the thousands of dollars, plus pressure to buy inventory.
- Testimonials about huge profits, with no evidence behind them.
What to do
- Treat any income guarantee as a warning sign.
- Don't pay until you've checked the company's name together with words like "complaint" or "FTC".
Source: FTC press release: FTC Announces Crackdown on Deceptive AI Claims and Schemes (Sep 25, 2024). Updated .
"Robot lawyer" and other replace-a-professional claims
The pattern: Services marketed as AI that can stand in for a lawyer or other licensed professional, without evidence it can.
In the same 2024 sweep, the FTC took action against a service marketed as an AI lawyer. The FTC’s complaint alleged the company didn’t test whether its chatbot’s output matched a human lawyer’s.
How to spot it
- Promises that you won't need a lawyer, doctor or accountant at all.
- No sign the company tested its tool against real professionals.
What to do
- Use AI to prepare questions and organize your notes, then check with a licensed professional.
Source: FTC press release: FTC Announces Crackdown on Deceptive AI Claims and Schemes (Sep 25, 2024). Updated .
AI-written fake reviews
The pattern: Reviews and testimonials generated by AI tools, with made-up details, used to make a product look popular.
The FTC acted against a tool that was marketed for generating consumer reviews and testimonials. Its complaint alleged the reviews often contained details with no relation to what the user typed in.
How to spot it
- Many reviews posted at once, with the same tone.
- Oddly specific details that don't fit the product.
What to do
- Read the lowest-rated reviews too, and check reviews on more than one site.
Source: FTC press release: FTC Announces Crackdown on Deceptive AI Claims and Schemes (Sep 25, 2024). Updated .
Fake "download the AI app" ads
The pattern: Ads for a desktop download of a popular AI tool that install malware instead, or alongside the real app.
How to spot it
- The tool normally runs in your web browser, but the ad offers a program to download.
- The download isn't offered on the maker's own website.
- The result sits at the top of a search page with an "Ad" or "Sponsored" label.
What to do
- Don't click ads to download software. Type the official address yourself.
- Keep your security software, operating system, browser and phone up to date.
Source: FTC consumer alert: Ads for fake AI and other software spread malicious software (Apr 13, 2023). Updated .
Lookalike apps in app stores
The pattern: Unofficial copies of free tools, listed in app stores under the real tool's name.
Example: GIMP is free, but the GIMP team says it doesn’t provide any package on Apple’s App Store at the moment, so a GIMP listing there comes from someone else.
How to spot it
- The publisher isn't the maker named on the tool's official website.
- A free, open-source tool is listed for a price.
What to do
- Follow the download link on the maker's own website instead of searching an app store.
Source: GIMP downloads page (the GIMP team says it doesn't provide any package on Apple's App Store). Updated .
Report a scam
In the US, report it at ReportFraud.ftc.gov. If you paid, contact your bank or card issuer right away. More tips: how to spot a legit AI deal.