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‘[Urgent] Stock Recommendation!’

A new spam message sent to an individual investor’s mobile phone contained a particular stock name along with a YouTube video link. In the video, the host stated they had already bought the stock and encouraged viewers to purchase it, saying, “This is your last chance.” Similar messages also appeared on online stock discussion forums around the same time.

In the future, efforts to manipulate stock prices will be identified at an early stage through artificial intelligence (AI), serving as a “protective barrier.” AI examines spam messages, YouTube videos, online content, and stock price fluctuations all at once to automatically identify high-risk stocks for trading. Following this, thorough inspections and evaluations are carried out.

The Financial Services Commission and Korea Exchange stated on the 3rd that they have fully implemented the “Cyber Abnormal Transaction Detection AI System,” designed to identify unjust trading practices at an early stage. This marks a subsequent step to the “Capital Market Unfair Trading Eradication Action Plan” introduced in July of last year.

Modern stock price manipulation has moved past hidden actions by certain groups, and now uses social media, YouTube, and text messages to widely distribute misleading information. The challenge is the sheer amount of data. There were restrictions on manually examining the huge volume of online information coming in every day. As a result, financial regulators developed a monitoring system that uses artificial intelligence.

As per officials, the new AI system gathers information from previous online posts, reports of spam messages, YouTube videos, and stock price data associated with stocks that may have unusual trading risks. It establishes impartial evaluation standards, rates listed stocks, and automatically identifies those with higher risks. Market monitoring officers then review the trading behaviors and information dissemination paths of the AI-chosen stocks, conducting thorough analysis and investigations when required. By identifying risk indicators at an early stage, the AI greatly minimizes response time.

The Financial Services Commission and the Exchange said, “With the AI system, we aim to identify unjust trading activities in the financial market at an early stage and will further enhance the application of AI technology and cyber information going forward.”