AI Quantitative Stock Trading Copy-Trading Scam: High-Yield Promises Masking Ponzi Schemes

Who Gets Targeted

Victims are primarily white-collar workers aged 30 to 45, internet finance enthusiasts, and retirees. Driven by the pursuit of high returns and blind trust in AI technology, they are easily lured by promotions promising '150% monthly returns' and 'zero risk.' Fraudsters use manipulated historical trading data and fake profit curves to build trust, then charge fees under the guise of 'custodial funds' or 'risk deposits,' promising 'real-market returns' of 3%–5% daily within 24 hours of investment. Typical losses involve large amounts of principal; withdrawal portals are restricted, and similar platforms investigated by the Shenzhen Public Security Bureau have involved over 300 million yuan.

骗局怎么运作

• Fraud rings use WeChat groups, QQ groups, or social media ads to post enticing content such as 'AI quantitative recommendations,' '150% monthly returns,' and 'zero risk' to attract white-collar workers and young people lacking professional investment experience to click links and register for self-developed AI stock trading apps.
• Once victims enter the app, the system automatically displays manipulated historical trading data and fake profit curves, accompanied by fabricated AI model descriptions, claiming to use big data and machine learning for precise stock selection to further build trust and induce deposits.
• The platform requires users to pay so-called 'custodial funds' or 'risk deposits,' ranging from thousands to millions of yuan, promising 'real-market returns' of 3%–5% daily within 24 hours. In reality, the funds are transferred to cold wallets controlled by the fraud syndicate.
• After the user completes their first deposit, the platform sends fake information via real-time pop-ups or private messages, such as 'profit screenshots' or 'account balance updates,' to create an illusion of profitability. Simultaneously, it restricts the withdrawal portal, opening it only for 're-investment' or 'membership upgrades,' forcing victims to continue adding funds.
• When victims attempt large withdrawals or raise questions, customer service delays them with excuses like system upgrades, account anomalies, or the need for ID verification. Subsequently, the group suddenly closes the community, deletes the app, or changes the domain, leaving victims unable to recover their money as the fraud syndicate absconds.

红旗信号（看到这些快跑）

• 🚩 Promising fixed high returns, such as 150% monthly or over 3% daily.
• 🚩 Demanding non-refundable fees such as custodial funds or risk deposits upfront.
• 🚩 Vague or unclear explanations of the AI models and algorithms used, lacking regulatory registration.
• 🚩 Restricted withdrawal channels, allowing funds to be withdrawn only through re-investment or membership upgrades.
• 🚩 Using community recruitment, word-of-mouth marketing, and forged profit screenshots as deceptive tactics.

真实案例

• The platform claimed a 3% daily return, but funds never entered the stock market. Members were unable to withdraw, and the platform backend cleared profit data at will, eventually being exposed as a Ponzi scheme.
• The Shenzhen Public Security Bureau officially opened a case after the platform locked all positions. The scheme involved multiple pension trustees, with estimated losses exceeding 300 million yuan, and all victim funds were frozen. (Source: https://www.bashou.cc/article/6151.html)
• A victim lost 1.6 million yuan in a single investment. The platform used 'AI quantitative' as a pretext for high-yield inducement, after which the account was blocked and the funds became untraceable.
• In September 2026, the Yinchuan Public Security Bureau disclosed the '3.10' major cross-border stock recommendation fraud case in Gansu: precise predictions of market movements via live streams and one-on-one guidance from exclusive mentors turned out to be a cross-border trap. Mr. Jia from Jiayuguan was defrauded of 4.92 million yuan, involving 6 layers of funds and 96 accounts. On May 25, 2026, 82 suspects were escorted back to China from Cambodia, including 25 fugitives. (Source: https://police.yinchuan.gov.cn/xwdt/jwyw/202609/t20260909_5339266.html)
• In July 2020, Xinhua News Agency reported that Shandong police dismantled a transnational stock recommendation fraud ring. A Dongying resident reported being defrauded after receiving a stock recommendation call in late October 2019. The Dongying public security authorities formed a task force to analyze fund and information flows, conducting a raid in Guangdong on June 12, 2020. Preliminary findings indicated over 1,600 victims with losses exceeding 100 million yuan. (Source: https://news.e23.cn/shandong/2020-07-09/2020070900617.html)

Official Stance

• Issued risk warnings regarding three types of illegal stock recommendation schemes, including AI quantitative stock selection, urging investors to verify platform qualifications.
• Official social media accounts reposted 'Targeting Securities and Futures Crimes: The Traps Behind Live-Stream Stock Recommendations,' highlighting common scams used in AI stock trading live streams.
• Issued a risk warning titled 'Beware of Illegal Financial Activities Conducted Under the Guise of Fake Stock Trading Software and AI Stock Trading.'

How to Protect Yourself

• ✅ Do not trust any financial products promising fixed high returns with zero risk, especially those using AI or quantitative trading as a gimmick.
• ✅ Log in to the official website of the China Securities Regulatory Commission (CSRC) or local securities regulatory bureaus to verify if the platform has obtained legal registration as a fund or securities investment fund manager.
• ✅ Before investing, save all promotional materials, chat logs, and transfer vouchers. Report to financial regulators or public security authorities immediately if any anomalies occur.
• ✅ Use trading channels provided by legitimate financial institutions and avoid making fund transfers through unofficial apps or community groups.