The inoculation technique led to a 10 percent reduction in fraudulent investments, while the plug-in reduced fraudulent investments by 31 percent.
“While AI can be utilized in ways that benefit investors, it becomes highly concerning when fraudsters use it to deceive investors,” said Leslie Byberg, executive vice president, Strategic Regulation at the OSC.
Byberg stressed that finding effective countermeasures improves investor protection and builds confidence in Ontario’s capital markets.
The research expands on the OSC’s earlier report, Artificial Intelligence and Retail Investing: Use Cases and Experimental Research and highlights the role of behavioural science as a policy tool for regulators.
With AI-based scams on the rise, the OSC will continue conducting research to better equip investors and market participants to identify risks and protect themselves.