AI and apps used to scam online share traders, says Anglo American

Anglo American has warned that no company will trade shares directly with the public using mobile apps.

The global mining company observed a recent increase in digital trading scams featuring materials with its branding shared on online platforms.

The promotions lure traders with unrealistic returns and Anglo American has reminded online deal-hunters that “if an offer seems too good to be true, it probably is.”

Purpose-built apps

Anglo American urged its members to report suspicious posts while reminding the public to treat unsolicited offers with extreme suspicion.  

The apps and websites used to siphon off traders’ funds have been described as “well-designed” and “extremely sophisticated”.

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Anglo American Executive Head of External Relations Nevashnee Naicker said scammers were hijacking the personas of prominent business leaders to give their offering legitimacy.

“We’ve seen several fake videos on social media using artificial intelligence [AI], and posts encouraging people to invest their hard-earned money,” stated Naicker.

“These posts then get shared by unsuspecting people on platforms such as WhatsApp, making them hard to trace and stop,” she added.

Not limited to trading

The scams are not only targeted at traders but also recruitment and procurement, attempting to exploit job seekers and business owners.  

“Do not respond to unsolicited offers through emails and social media advertisements with links. Anglo American will never ask anyone to invest in this way,” confirmed Naicker.

A similar warning was issued by Phalaborwa mining entity Foskor earlier this week regarding fraudulent tender and job advertisements.

Foskor’s branding was also copied onto the adverts with the aim of luring contractors and suppliers, reported Zululand Observer.

Requests for money upfront, and the exclusive use of mobile numbers and email addresses that do not contain company handles are immediate red flags.

Those suspicious of potential offers are asked to check with the relevant company directly in order to authenticate the posts.

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