What’s AI fraud?
Artificial intelligence (AI) is changing many aspects of our lives, but it also presents new opportunities for fraudsters. As AI becomes more sophisticated, so must our defenses. AI-based fraud is a type of scam involving the use of advanced technologies such as machine learning, generative AI, and natural language processing (NLP).
Scammers create highly convincing and effective messages that often have a personal touch to them. The compelling nature of these fake audios, videos or emails makes it easier for them to trick people into believing their fake stories.
Spotting the synthetic: Beware of these types of AI frauds
• Fraudulent customer service bots: Fraudsters can deploy AI-powered chatbots to impersonate customer service representatives of legitimate companies.
These bots can trick consumers into sharing personal information or making payments for fake products and services. This is mostly in the form of a vishing attack, where voice calls or voice messages are sent to people.
• Phishing attacks: Phishing is a type of cyberattack where you receive fake emails, SMS or phone calls asking for personal information. AI algorithms can be used to generate highly convincing voice and video for phishing scams that appear to come from trusted sources.
These messages may contain malicious links or attachments designed to steal sensitive information or install malware on your device. When this type of attack is sent to a group or an organization, it is called spear phishing.
The attackers spend a large amount of time researching about the receiver’s friends, family, work, and life. That’s why these types of emails, SMS and phone calls create a sense of familiarity.
• Deepfake technology: AI-powered deepfake technology can be used to create realistic-looking videos or audio recordings of individuals saying or doing things they never actually did. These fake media can be used to deceive consumers into believing false information or engaging in fraudulent activities.
• Algorithmic trading fraud: AI algorithms can be used to manipulate financial markets or execute fraudulent trading strategies. For example, fraudsters may use AI to create fake news articles or social media posts to manipulate stock prices or engage in high-frequency trading schemes to exploit market inefficiencies.
• Fake product reviews: AI-generated fake product reviews can artificially increase the ratings of low-quality or counterfeit products, deceiving consumers into making purchases based on false information.
• Identity theft: AI algorithms can be used to steal identities. Fraudsters can create synthetic identities to open fraudulent bank accounts, apply for loans or make unauthorized purchases.
AI can even create videos of identities that they want to impersonate. This makes it very difficult to understand if this is the real identity or not.
Here’s how we can outsmart AI-powered fraud:
1. Don’t rush: Take deep breaths and avoid taking any quick actions – no matter how urgent the request seems.
2. End the call: If the person claims to be a friend or family member in urgent need of money and calls from an unknown number, immediately end the call. Try calling them on their original number and not on the one you received their call from.
3. Enable caller ID and call blocking: Always enable the caller ID feature on your smartphone. The caller ID feature will show you who is calling and their location. It also shows if it’s a spam call or from a telemarketer.
To protect yourself from fraudulent robocalls, you can enable call blocking feature in your smartphone.
4. Don’t share personal details: No matter what the situation is, DO NOT share your personal and confidential information such as email ID and phone number.
5. Use a password manager: With a password manager, you don’t need to remember all your passwords as they’re all saved. Practice the following smart password habits:
• Create complex passwords with a combination of capital and small letters, numbers, and special characters.
• Use different passwords for different accounts.
• Change them regularly.
6. Social media profile audit: Don’t share too many personal details on social media sites such as Instagram, Facebook, LinkedIn. Check your social media profiles and delete everything that could be used by attackers. Make sure your privacy settings are set correctly, so that only your friends, family and co-workers can see your posts.
7. Verify the source: If you receive any suspicious emails, SMS, audio, or video files demanding money, make sure you first verify their validity. If the sender claims to be from an organization, use any contact method given on their official website. If the sender is a person, talk to your friends and family to verify the person’s identity.
8. Don’t open unknown links: Whether sent via text, email, social media, or any other channels, DO NOT open unknown links or download attachments that are sent to you from unverified sources.
9. Update your security software: Make sure you have installed efficient security software and update it regularly.
10. Audit your inbox: Conduct regular checks for suspicious emails, such as those requesting password changes or containing suspicious links.
11. Report it:If you suspect a scam, tell your local authorities. Sharing your scam story helps both investigators trying to close the case on fraudsters and others avoid getting scammed.
Remember, don’t be afraid to say no and hang up so you can take the time needed to verify the situation. If something feels off, it probably is!
Together, we can be smarter and safer.
Find out more about preventing fraud on this page.
