Tag: investment fraud
SEC fines companies $400k for over-hyping AI
Ever since the launch of the deeply flawed Microsoft-backed public-facing artificial intelligence (AI) service ChatGPT at the end of 2022, AI has been used to power a whole range of services. But the days of marketing and PR departments simply attaching the words “AI-driven” to over-hype any digital offering in the hope of attracting investors and customers are now hopefully coming to an end. Earlier this week, the US Securities and Exchange Commission (SEC) fined two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., a total of US$400,000 between them. The SEC’s order against Global Predictions alleged that the San Francisco-based firm made false and misleading claims in 2023 on its website and on social media about its purported use of AI. The order against Toronto-based Delphia alleged that the firm had made false and misleading statements in its SEC filings, in a press release, and on its website regarding its purported use of AI and machine learning.
FBI reports record cybercrime losses in 2023
The US Federal Bureau of Investigation reports that last year the Internet Crime Complaint Center (IC3) received a record number of complaints, with potential losses exceeding $12.5 billion. Although the figures for 2023 represent a 10 percent increase over 2022 and a 22 percent rise in losses suffered, the FBI fears that even this only represents the tip of a vast unseen iceberg of cybercrime. The report quotes the FBI’s recent infiltration of the Hive ransomware group, which discovered that only 20 percent of victims had reported the incidents to law enforcement authorities.