Scammers have a new tool: Artificial Intelligence (AI)

Gone are the days of recognizing a scam by its misspellings and bad grammar.  Hello AI-generated emails, websites, texts; even phone calls that accurately mimic legitimate people and companies! This blog post delves into the rise of AI-driven threats and offers practical advice on how to keep yourself protected. 

The rise in AI-driven Scams

Artificial intelligence (AI) is a powerful tool, transforming industries and enhancing our everyday life. Alongside its many benefits, however, are significant risks posed by AI, particularly in the realm of scammers intent upon stealing your personal information or tricking you into handing over your money. Phishing emails that look like they came from a friend, a phone call that sounds like your child in need, or a random text from a local authority threatening a penalty are now becoming the norm. 

How does it work?

Scammers use AI technology, such as OpenAI’s ChatGPT and Google’s Gemini, to mimic voices, faces, and writing styles with alarming accuracy. These tools are readily accessible, making it easy for criminals to generate realistic yet fake content. A scammer can ask ChatGPT to craft a very convincing phishing email, simulate conversations based on information obtained from social media, and create deepfake videos that are nearly indistinguishable from reality.

Examples in the News

In 2023 the Federal Trade Commission (FTC) reported 2.6 million consumers were defrauded out of over $10 billion. The most identified scam category was imposter scams, with email as the most common delivery method and phone calls as the second.  Let’s look at a couple of the recent reported scams that involved the use of AI.

1. Scammers used AI to create fake websites that appear identical to those of major, trusted institutions like Charles Schwab & Co, Inc. Search engine optimization (SEO) techniques placed these legitimate looking websites at the top of internet search results, and Schwab’s actual clients visiting these sites were exposed to phishing attacks aimed at stealing their information and assets.

2. In July, a livestream video reportedly featured an AI-generated Elon Musk telling viewers to send Bitcoin to a particular address with the assurance of doubling their money. The fake address received approximately $53,000 before the fraud was detected and the website taken down.

3. Today, a common “Smishing” scam is circulated by text messages indicating that your UPS package has been delayed and confirmation is required to proceed with delivery. Clicking the “confirmation” link, however, takes you to a fake AI-generated UPS website that requires your personal and financial information. Of course, your package is not lost, but you just gave the scammers what they need to order their own packages!

How do you protect yourself?

The following are a few practical, simple tips to help you stay safe:

• Multi-factor Authentication (MFA): You can easily add MFA as an additional layer of security to your log-in routine. For example, after entering your username and password, MFA will then require you to enter a code that is automatically sent to your cell phone. It can feel like an annoying extra step, but it is the best way to prevent unauthorized access to an account when your log-in credentials have been stolen.
• Password Managers: One of the most useful, and often free, applications in today’s world of online everything is a password manager that automatically fills in your log-in credentials (Autofill). One of the best features of a password manager is eliminating phishing sites; Autofill will not work automatically if the expected website address isn’t legitimate.
• Bookmarks: To avoid fake websites, do not use Google (or other search engines) to access a website, e.g., Schwab’s website. Save the official Schwab website, Schwab.com, as a bookmark in your browser, and use that for future access the site.
• Telephone Scams: Today, simply answering a call or text from an unknown number tags you as a live target. Let it roll to voice mail. If you miss anything important, they will likely leave a message, and you can call right back.
• Verify Caller Identities: Do not blindly trust caller ID. If a caller asks you to take immediate action, disclose sensitive information or spend money, they are probably up to something nefarious. Tell them you will call right back, hang up without further conversation, and call the organization that allegedly contacted you by dialing a known number.
• Family Safe Word: The exorbitant amount of personal details people share on social medial sites is being compiled by scammers and used to perpetuate phony emergencies by pretending to be a loved one in danger. The scammers run into trouble when they mess with a family that is prepared with a Safe Word; a unique word or phrase that only immediate family members know and use when a family member’s identity is in question. If, for example, a phone call, text or email arrives from someone claiming to be a family member in need of money, asking him to recite the Safe Word can help you verify the legitimacy of that request.
• Guard Personal Information: Be mindful of how your online personal information can be used against you and limit it as much as possible.
• Educate and Report: Inform loved ones about the latest scams. If you suspect that your information has been compromised, report it immediately. In the U.S., you can report identity theft to the FTC at ReportFraud.ftc.gov.
• Secure Your Credit: You can obtain a free credit report annually from each of the three major credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com. You can also opt to “lock” your credit so it can’t be used without your direct authorization. The bureaus can be accessed directly:
  • Equifax - www.equifax.com/CreditReportAssistance
  • Experian - www.experian.com/fraud
  • TransUnion - www.transunion.com/fraud

Conclusion

Innovative technology like Artificial Intelligence is naturally exciting, but its glitziness can also be blinding. Stay sharp and mindful. As always, buyer beware, especially when someone or something seems too good to be true.  Keep up with the latest news because just knowing about such tricks can be half the battle.  With an ounce of prevention and limiting your exposure, you can significantly lower your risk of becoming a victim.