Fake AI Trading Platform Shows Victim $1 Million Balance After $120,000 Deposit

Police in Washington state have warned about AI-themed investment scams after a victim lost around $120,000 to a fake trading platform promoted through social media advertising.

According to Centralia police, the scam began after the victim clicked on an online advertisement offering AI-assisted stock investing services. The victim initially deposited $250 and was later contacted by an individual posing as a financial adviser.

Authorities said the scammer continued encouraging additional deposits while sending portfolio updates showing rapid profits and account growth. After transferring roughly $120,000, the victim was reportedly shown a balance exceeding $1 million on the platform.

Police said the victim later attempted to wire another $70,000 to the operation, but employees at a financial institution refused to process the transaction and alerted authorities.

Investigators later determined the investment platform was fraudulent and that the displayed profits were fabricated to pressure the victim into sending larger amounts of money.

The case follows a growing wave of fake AI trading and crypto investment scams promoted through Facebook, Instagram, YouTube, Telegram and other social media platforms. Many operations advertise automated trading systems, AI-powered investing tools, or guaranteed high-return portfolios to attract retail investors.

Scammers commonly use fake dashboards showing large unrealized profits, allowing victims to believe their investments are rapidly growing. In many cases, victims are permitted to withdraw small amounts early in the process to build trust before larger transfer requests begin.

Police said many of these operations originate overseas, making fund recovery extremely difficult once money has been wired or converted into cryptocurrency.

Authorities urged investors to verify trading platforms independently and avoid sending funds based solely on social media advertisements or unsolicited financial advice.