Stay Vigilant: Protect Yourself from AI-Driven Scams This Holiday Season
November 11th, 2024
Reminder: Be Wary of Modern Scams
Busier than usual schedules and inboxes make the last quarter of the year a prime time for fraudsters to target individuals and families. Unfortunately, there is an increase in AI assisted scams this year as well, giving citizens everywhere reason to take pause before giving any sensitive information or transacting in any format other than in-person. In a recent article by Alliant, “The Dark Side of Innovation” they share helpful tips to keep yourself, and your loved ones, protected from scams. Read the full article below courtesy of Alliant or on their website here.
The Dark Side of Innovation: AI and Modern Scams
An international financial company faced a serious security breach during an internal video call when fraudsters used deepfake technology to impersonate the CFO and other senior leaders. This deception resulted in a finance employee transferring $25 million, mistakenly believing it was a legitimate request.
This is just one example of how scammers are leveraging technology, especially artificial intelligence (AI), to swindle record amounts of money. According to IC3, the FBI’s Internet Crime Complaint Center, such reported losses surged by $300 million in the first five months of 2024 alone.
To counter the growing risk, the FBI has announced a nationwide campaign to raise awareness of scams fueled by AI and other technologies. This initiative highlights the importance of understanding these threats and encourages individuals to take proactive steps. In light of this campaign, we wanted to share some of the most common scams along with tips designed to help you stay protected.
Common scams
Voice cloning:
Scammers use voice cloning technology to impersonate a loved one in distress. They may call with urgent requests for money or personal information which is then exploited to gain access to accounts.
Deepfake scams:
Scammers utilize generative AI to create realistic altered images or videos of public figures, friends, or family. These deepfakes can convincingly mimic appearances and voices to solicit money or sensitive information. The challenge of distinguishing real and fake content poses significant risks.
“Wrong number” texts:
Scammers send unsolicited texts that appear to reference prior conversations or meetings. By fabricating a context, they aim to prompt the recipient to respond, leading to potential phishing attempts for personal information or financial details.
Romance scams:
Con artists exploit online dating platforms to build emotional relationships with victims. They often create fake identities, complete with elaborate backstories, and may even propose marriage. As trust builds, they fabricate emergencies or financial hardships, ultimately requesting money transfers. Victims can face significant emotional trauma and financial loss, as scammers can persuade them to send large sums of money over time.
Election scams:
Fraudulent political action committees (PACs) can mislead individuals into donating funds for fake causes. The funds solicited may be funneled directly into the scammers’ personal accounts, leading to financial loss for unsuspecting donors. Moreover, such scams can undermine trust in genuine political fundraising efforts.
Holiday scams:
Tactics during the holiday season include failing to deliver items that have been paid for, misrepresenting items on auction sites, as well as gift card fraud. Victims may end up losing money on purchases that never arrive or unwittingly provide gift card information, which can be redeemed immediately by the scammer.
How to protect yourself
Scammers thrive on urgency to exploit their victims. Therefore, the best defense against AI-powered scams is to pause and resist the pressure to act quickly. For example, if you get a call from someone claiming to be your child or grandchild in trouble, verify the situation by putting them on hold and making another call before sending money.
It’s also important to be cautious with links sent from banks, online retailers, delivery companies, or any organization. Instead of clicking on links, it’s safer to visit their official websites directly to manage your accounts, make payments, or donate.
Always remember, never invest in or give money to someone unless you can verify their identity. If you’re unsure, consult your financial advisor before transferring any funds. And if you do feel the need, consider giving only what you’re comfortable with potentially losing.
Another key point is to review your cyber-insurance policy. Coverage for scams and fraud can vary widely, so it’s wise to discuss your specific needs with your account executive. Keep in mind that policies usually don’t cover voluntary money transfers, even in fraudulent scenarios.
If you do fall victim to a scam, contact the relevant institution immediately to request a reversal or a refund for credit, debit, gift cards, or wire transfers. While results may vary, it’s worth trying. Cryptocurrency payments, by the way, are generally not reversible, which is why many scammers demand them.
Article as originally posted: https://alliantprivateclient.com/articles/the-dark-side-of-innovation-ai-and-modern-scams/?utm_source=Producer_Tools&utm_medium=E-mail&utm_campaign=ST