The Seoul Special Judicial Police Bureau for Public Safety recently arrested two people responsible for running a multi-million dollar Ponzi scheme. Ten collaborators accountable for recruiting victims of the scam also face charges. What makes the case unique is that human agents did not crack this case—an artificial intelligence (AI) investigator did.
Hong Nam-ki, the section chief of the bureau’s second investigation team, told Korea JoongAng Daily that the algorithm was able to dismantle the gang’s operations after comparing it to common data patterns typical of these fraudulent activities. “We were able to teach the AI patterns of Ponzi schemes. The program can also identify advertisement patterns and identified the enterprise in question, which [was caught] with evidence provided by an unnamed informant,” says Hong.
The Ponzi scheme defrauded more than 56,000 people, mostly senior citizens over the age of 60, and collected more than $18.7 million.
The Seoul Special Judicial Police Bureau for Public Safety is not alone in the successful use of AI to catch criminals. A few months ago, a group of researchers managed to accurately predict a series of Pump and Dumps schemes with AI algorithms.