South Korea’s authorities and leading stock exchange have introduced AI-driven tools to combat ‘pump and dump’ schemes manipulating cryptocurrencies and stocks for investor gain.
These scams involve acquiring assets, spreading misleading positive information, and selling at inflated prices.
With social media’s reach, they have surged, prompting the Korea Exchange and regulators to use AI for monitoring online content and financial activity.
The AI scrutinizes posts, assesses market movements, and flags potential fraud, allowing authorities to promptly investigate.
The Financial Services Commission appreciates this innovation, which expedites suspect analysis.
Moreover, the Financial Supervisory Service is enhancing its crypto scam detection with AI, overcoming challenges like high-frequency trading through equipped servers for advanced analysis.
Encouraging public whistleblowing remains crucial, promoting more fraud reports with increased rewards.
Notably, South Korea has faced several crypto scandals, including Terraform Labs’ collapse led by native Do Kwon.
These measures underscore South Korea’s commitment to securing financial markets against fraud.