Artificial intelligence (AI) is impacting many facets of society, including the business world and also the darker world of fraud. As it has become much more technologically advanced, scammers have found it easier than ever to use AI for nefarious purposes. Consumers should be aware of these high-tech scams and how to detect them.
More Concerns About AI Use for Scams
According to reports, consumers are growing increasingly concerned about scams that utilize AI, and with good reason.
"With the increasing sophistication of large language models, image generation systems, and more, it is becoming harder to distinguish human from machine," says the FTC. (1) "AI products could be used by malicious actors to increase the scale or sophistication of existing scams...and in the online fraud world, that may make common cybersecurity tips less effective for most consumers."
According to the FTC, consumers have submitted a number of complaints about scams and fraud examples they believe were powered by AI. (1)
"Some reports worry that phishing emails will become hard to spot as scammers start to write them with generative AI products and previously tell-tale spelling and grammar mistakes disappear," the Commission says. "Others state concerns about how generative AI can be used to conduct sophisticated voice cloning scams, in which family members’ or loved ones’ voices are used for financial extortion. Some even say they’ve already experienced this themselves."
The FTC notes that romance scams and financial fraud may also be "turbo-charged" by generative AI with fraudsters making use of chatbots to communicate with more people for less expense. It says it has already received many reports from people about being tricked by messages originated from AI.
Scams Getting Harder to Detect
Not only are AI-based scams becoming a larger concern, but they may also be getting more difficult to detect, which is another major problem.
According to Yahoo Finance (2), AI is helping fraudsters create more convincing scams. (2) AI is not only coming up with deceptive scripts for emails, text message, and phone call scams, it's even being used to create convincing voices and images. For example, the report cites a romance scam in which "fraudsters pose as prospective lovers and fool victims out of their money" using deep fake technology to alter images and the sound of their voice.
It also references a ransom scam in which the victim might receive a call from a family member or friend in the night asking for money. It can be harder to detect because AI has been able to generate a convincing voice.
Staying Vigilant
Many consumers are used to staying on guard against fraud as email, text message, and other online and phone scams have become extremely prevalent. However, the rise of artificial intelligence is making these traditional fraud vehicles an even bigger problem. It is crucial that consumers stay vigilant in the face of this growing threat, and take financial security as seriously as ever.
Yahoo recommends creating a family password that only family members would know and that scammers wouldn't. This can be a way to know if you are dealing with a legitimate person in one of these fake phone calls. Also, watch for red flags such as messages with urgency that ask for money or sensitive information. When in doubt, end the communication, and reach out to the person directly for verification.
FTC Is Keeping an Eye Out
The FTC says it is keeping a close watch on the marketplace and on tech company conduct as more AI products emerge. It maintains it is invested in increased understanding of the technology and in harm prevention. Part of that investment is in applying the law. In other words, they are looking to regulate this in some way, but even that is no guarantee that fraudsters won't be able to reach consumers in increasingly convincing ways.
Much of this technology is already out there, and it's hard to imagine things won't get worse before they get better. Stay informed about the latest AI scams to help protect yourself from becoming the next victim.
2. https://finance.yahoo.com/news/ai-is-making-financial-scams-harder-to-detect-164246411.html