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How Scammers Exploit AI and How to Fight Back

Published: March 20, 2024

How Scammers Exploit AI and How to Fight Back

In an era of digital technology, with all its technological advances, scammers are looking to exploit it for nefarious purposes. In recent years, the rise of artificial intelligence (AI) has provided scammers with new tools and techniques to deceive consumers and perpetrate fraudulent activities. According to the Federal Trade Commission (FTC) 2.6 million consumers reported losing more than $10 billion to fraud in 2023, marking the first time that fraud losses have reached that benchmark. This marks a 14% increase over reported losses in 2022.

From sophisticated chatbots to AI-generated deepfakes, scammers leverage AI in increasingly cunning ways. Let's explore how scammers use AI and how consumers can defend themselves against these emerging threats.

How Scammers are using AI 

AI-Powered Chatbots:

Scammers deploy AI-powered chatbots to impersonate legitimate customer service representatives or social media profiles, luring unsuspecting individuals into divulging sensitive information or clicking on malicious links. These chatbots can engage in natural language conversations, making them more convincing and difficult to discern from genuine interactions. Consumers should exercise caution when engaging with unknown entities online and verify the authenticity of communication channels before sharing personal or financial information.

AI-Generated Deepfakes:

Deepfake technology, driven by AI algorithms, enables scammers to create highly realistic fake audio, video, or text content that impersonates individuals or organizations. From CEO impersonation scams to fabricated evidence of financial transactions, deepfakes can be used to manipulate perceptions and deceive unsuspecting victims. Consumers should remain vigilant and scrutinize the authenticity of media content, especially when it comes to requests for sensitive actions or information.

AI-Enhanced Social Engineering:

Scammers employ AI-driven social engineering techniques to craft personalized phishing emails, social media messages, or fraudulent advertisements tailored to specific demographics or interests. Scammers can create highly targeted campaigns to exploit individuals' trust and familiarity by analyzing vast data from social media profiles and online activities. Consumers should exercise caution when interacting with unsolicited messages or advertisements, especially if they request sensitive information or prompt immediate action.

Consumer Defense Strategies:

  • Never give your personal information over the phone to someone who claims to be your bank: Most banks, including USSFCU, will never initiate a conversation over the phone to ask for your personal information. If you're ever in doubt, hang up the phone and call your local bank branch to verify any requests
  • Education and Awareness: Stay informed about the latest AI-driven scams and familiarize yourself with scammers' tactics. Educate friends and family members about potential risks and how to identify suspicious activities.
  • Create a "safeword" to share with family and friends to help authenticate phone calls: Scammers can use AI to replicate the sound of someone's voice, which can be very convincing. A safe word is a quick and easy way to verify a person's identity.
  • Vigilance and Skepticism: Approach unexpected communications or requests for personal information skeptically. Verify the legitimacy of communication channels and double-check the identity of individuals or organizations before taking action.
  • Secure Communication Channels: Use secure communication channels, such as encrypted messaging apps or verified official websites, when sharing sensitive information or conducting financial transactions online.
  • Two-Factor Authentication (2FA): Enable two-factor authentication wherever possible to add an extra layer of security to your online accounts. This helps prevent unauthorized access, even if scammers obtain your login credentials.
  • Report Suspicious Activities: If you encounter suspicious AI-driven scams or fraudulent activities, report them to the relevant authorities, such as consumer protection agencies or cybersecurity organizations, to help prevent others from falling victim to similar schemes.

 

As scammers continue to adapt and evolve their tactics in the digital age, consumers must remain vigilant and proactive in defending themselves against AI-driven scams. By staying informed, exercising caution, and adopting robust security practices, individuals can mitigate the risk of falling prey to fraudulent activities perpetrated by AI-powered technologies. We can thwart scammers' efforts and create a safer online environment.

Article content and third-party links are provided for information purposes only. 

Reference:

Bank, S. (2023, August 2). A new tool for scammers: AI. Personal, Business or Commercial Banking. https://www.seacoastbank.com/resource-center/blog/ai-a-new-tool-for-scammers?hs_amp=true

 

Chase, B. (2024, March 5). A new tool for scammers: AI. Brooke Chase Associates. https://brookechase.com/a-new-tool-for-scammers-ai/

 

Staff in the Office of Technology. (2024, March 4). As nationwide fraud losses top $10 billion in 2023, FTC steps up efforts to protect the public. Federal Trade Commission. https://www.ftc.gov/news-events/news/press-releases/2024/02/nationwide-fraud-losses-top-10-billion-2023-ftc-steps-efforts-protect-public

 

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