AI-powered stock trading scam in China targets retail investors
Scammers in China reportedly used AI as a marketing device to attract retail stock investors, claiming a proprietary AI system could generate profitable trading recommendations. Investors were convinced to pay fees and make trades through fraudulent apps, but the AI's performance claims were fabricated and investors suffered losses.", <parameter name="event_date">2025-03
What happened
Scammers contacted retail investors by phone claiming to have developed an AI-powered trading platform and stock selection system, offering free daily stock pool recommendations before market open.
Investors were directed to contact scammers via WeChat, QQ and other platforms, and were presented with misleading investment performance data. The scammers then persuaded investors to make payments to access supposed premium advisory services and make stock trades through fraudulent apps named ZX-JT.
Reported impact
Retail investors lost money through the scheme. The scammers collected membership fees from investors and profited from trading commissions, while investors who followed the fraudulent stock recommendations suffered losses.
Index analysis
The scammers used AI as a marketing tool to attract investors, claiming the system could forecast stock movements and identify profitable trades. However, analysis indicated the AI model was used to generate fabricated success rates and misleading performance claims rather than provide genuine trading strategies.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.