On January 25, 2024 the CFTC's Office of Customer Education and Outreach warned that fraudsters exploit interest in artificial intelligence to sell trading bots, signal services, and crypto schemes promising guaranteed returns. The advisory states that AI cannot predict the future or sudden market changes, and it was published the same day as the CFTC staff Request for Comment on AI. The December 2024 staff advisory later cited it as part of the agency's AI work.
| Document | CFTC AI Scams Customer Advisory — Customer Advisory: AI Won't Turn Trading Bots into Money Machines |
| Issued by | Commodity Futures Trading Commission |
| Type | Guidance |
| Status | In force |
| Published | Jan 25, 2024 |
| Effective | Jan 25, 2024 |
| Applies to | Retail customers of futures, options, forex, and crypto-asset trading; relevant to FCMs and introducing brokers screening marketing and onboarding |
| Official source | cftc.gov ↗ |
| Use cases | Fraud detection · Trading & capital markets |
What are the key points of CFTC AI Scams Customer Advisory?
- Warns that claims of AI-powered trading bots with 'unreasonably high or guaranteed returns' are a hallmark of fraud
- States plainly that AI technology cannot predict the future or sudden market changes
- Published January 25, 2024 alongside the staff Request for Comment on AI in CFTC-regulated markets
- Backed by CFTC enforcement history against AI-bot frauds, including the Mirror Trading International case in which CEO Cornelius Steynberg was ordered to pay over $3.4 billion
- Encourages customers to check registration status and report suspected fraud to the CFTC
What did CFTC AI Scams Customer Advisory change for banks?
The advisory signals that the CFTC treats 'AI' marketing claims as an enforcement trigger. For bank FCMs and introducing brokers it raises the bar on vetting third-party trading-signal vendors and on any AI language in customer-facing marketing.
Has the CFTC brought enforcement actions over fake AI trading bots?
Yes. The CFTC has obtained large judgments against schemes that falsely claimed to use AI trading bots, including the Mirror Trading International forex fraud where the CEO was ordered to pay more than $3.4 billion.
Does the advisory impose obligations on FCMs?
No; it is customer education. But it shows what the Division of Enforcement treats as fraud, so firms should scrutinize AI performance claims in their own and their vendors' marketing.
| Date | Document | Status |
|---|---|---|
| Aug 19, 2026 | CFTC Compute Derivatives RFC — Request for Comment on the Listing of Compute Derivatives Contracts | Comment period open |
| Mar 24, 2026 | CFTC Innovation Task Force — Chairman Selig Announces Formation of New Innovation Task Force | In force |
| Jun 18, 2025 | Johnson RegHub Summit Remarks (Jun 2025) — Keynote Remarks of Commissioner Kristin N. Johnson at RegHub Summit London 2025: Enabling AI Tools To Enhance Compliance and Surveillance | Final |
| Dec 5, 2024 | CFTC Staff Advisory 24-17 on AI — Staff Advisory on the Use of Artificial Intelligence in CFTC-Regulated Markets (CFTC Letter No. 24-17) | In force |
| Dec 5, 2024 | Johnson Statement on AI in Derivatives Markets (Dec 2024) — Statement of Commissioner Kristin N. Johnson on Future-Proofing Financial Markets: Assessing the Integration of Artificial Intelligence in Global Derivatives Markets | Final |
| May 2, 2024 | CFTC TAC Responsible AI Report — Responsible Artificial Intelligence in Financial Markets: Opportunities, Risks & Recommendations | Final |
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