AI in Financial Crime: New Scams and How to Protect Yourself

Artificial intelligence is changing the world around us. It’s transforming how we work, how we use the Internet, how we entertain ourselves, and how we interact with each other. 

Like most new technologies, AI has enormous potential for both good and harm. Because while AI is bringing us new ways to live, it’s also bringing criminals new ways to run scams.

From phishing to DDoS attacks to Facebook Marketplace scams, AI is putting powerful tools in the hands of scammers. Let’s take a look at how you can protect yourself.

How artificial intelligence is changing financial crime

AI has become a powerful tool for scammers. Its ability to collect, analyse, and interpret huge quantities of data makes it a scammer’s best friend. 

Generative AI, in particular, makes scams even easier to do. For instance, it’s now possible for anyone with an Internet connection to generate extremely realistic photos and videos of fake people. Generative AI can also write messages and emails in any tone of voice or language. That makes it easier for scammers to trick their targets into trusting them. Many of these tools are free and simple to use.

Then there are deepfakes—AI-generated impersonations of real people that can trick others into being scammed. For example, scammers used AI to clone the voice of an energy company CEO and convinced colleagues to transfer €220,000. Likewise, a man lost $690,000 in weeks after falling for a fake video of Elon Musk offering cryptocurrency investments.

Common AI-driven financial scams you’re likely to encounter

We all like to think we’d know a scam if we saw one. But AI allows scammers to create far more convincing lies to trick us out of money. Here are some of the most common financial scams that use AI to trick people:

• AI-generated phishing emails and messages. These messages will pretend to be from a legitimate source like a bank, an electricity company, or a courier. The goal is to get you to click on the link and share your login details. They can then access bank accounts and other sensitive information.
• Deepfake voices and impersonation scams. These take many different forms, from impersonating trusted celebrities to pretending to be family members in need of financial help. AI allows these scams to be highly convincing.
• Fake customer support, investment offers, and payment requests. Scammers can use AI to generate extremely convincing requests for payment or offers of customer support. The goal is to get your personal details from you.
• Facebook Marketplace and social commerce threats. With the help of AI, scammers can create fake listings with realistic seller profiles. These scams convince people to send money for products that don’t exist. Alternatively, they can trick sellers with fake payment details.

Why AI-powered scams are harder to detect

Scams have been around since long before the Internet. But AI has made them harder than ever to detect.

AI allows people to create messages free of spelling errors and other red flags traditional scams often had. AI can adapt in real time based on victim responses, so that its messages will reflect what you sent it. Its ability to generate fake images and videos makes the lies scammers tell their victims even more convincing.

And because AI can generate content quickly, it allows scammers to approach even more targets.

How individuals can protect themselves from AI-driven scams

AI makes it harder than ever to spot a scam while it’s happening. But there are still ways that you can stay alert and protect yourself:

• Slow down and verify. Scammers often rely on urgency. They want to pressure you to act quickly, pay immediately, or move conversations to a new platform. They use this strategy because they know that when people are in a hurry, they don’t think straight. Always treat requests for money, your personal details, or login credentials with suspicion. That’s true even if the message seems to come from someone you know.
• Practice strong account security. Use unique passwords for financial, email, and marketplace accounts. Enable multifactor authentication (MFA) wherever possible. This method adds an extra layer of protection so that even if scammers get your credentials, they still won’t be able to sign in and you’ll be notified about suspicious activity.
• Always verify profiles on social media. That’s especially true when buying on Facebook Marketplace or other social commerce platforms. Be suspicious of newly created accounts, abnormally low prices, or sellers looking for alternative payment methods. Stick to in-platform messaging and payment systems.
• Use a secure connection. That’s especially important if you’re using public Wi-Fi, where hackers can intercept your data. Use a VPN to encrypt your data and protect yourself and keep your online activity private.

Staying ahead of AI-enabled financial crime

AI has given criminals new powers to trick people out of their money and data. But it also provides new tools to enhance cybersecurity. Still, the best defense against AI-powered scams remains your own judgment. 

If something is too good to be true, it usually is. If someone is offering you a product or service much cheaper than anyone else, ask yourself why. If someone has a new profile with very little activity, assume they are not who they claim to be.

Be wary of anyone asking you for money or credentials. Remember, in the age of AI, people are not always what they seem. Use a reliable VPN and technology like multifactor authentication so that you won’t fall prey to an AI scam.

The post AI in Financial Crime: New Scams and How to Protect Yourself appeared first on FF News | Fintech Finance.