AI Supercharging Fraud Schemes

The evolution of artificial intelligence is opening doors for fraudsters in unprecedented ways. While advancements in these technologies are improving accessibility and efficiency for businesses and consumers, they’re also providing criminals with ways to deceive unsuspecting persons.

As digital technology evolves faster and faster, it’s crucial for businesses and consumers to be aware of the ways these tools are being used to commit fraud and how they can use them to also fight fraud.

Here are a few ways AI is being used to fuel fraud 

1. Social Engineering Schemes. Criminals are using these schemes to psychologically manipulate and deceive individuals into revealing sensitive information or making security mistakes. Criminals are using AI to create more personalised, convincing, and highly effective messages in an automated way and are able to attack even more people in less time with these tools. Some common social engineering schemes are:
2. Phishing – where cybercriminals send seemingly legitimate emails or messages to trick those they target into sharing sensitive information, such as passwords or credit card details.
3. Vishing – uses voice communication to impersonate legitimate entities and extract confidential data over the phone.
4. Business Email Compromise (BEC) Scams – where fraudsters compromise business email accounts and impersonate employees or executives, targeting financial transactions or sensitive data.
5. Password Hacking. Cybercriminals are using AI to improve their ability to crack passwords. With AI, hackers can guess passwords more effectively, posing a significant threat to the security of online accounts and systems.
6. Deepfakes and Voice Cloning. Fraudsters are using AI tools to boost their deepfake and voice cloning scams. AI can blend and superimpose images on to other images and within video content at alarming speeds, enabling fraudsters, even those with little to no design or video-production skills to perform these actions. The quickness of these tools also increases the effectiveness of such fraud attacks.

Here are some ways to mitigate AI-enabled fraud

1.  Secure your personal information. Never share your personal details, such as the PINs for your bank cards or account passwords. Be cautious when sharing information online and avoid sharing confidential details on social media.
2. Where possible, enable 2FA or two-factor authentication to make it harder for fraudsters to access your data.
3. Use secure channels. Avoid using public Wi-Fi networks, especially to access sensitive information. Ensure you also interact with secure platforms with ‘https://’ in the URL.
4. Fight AI with AI. Leverage advanced technology, like other AI tools, that can analyse transactions, user behavior, and other relevant data in real time. Ensure these models are regularly updated to adapt to evolving fraud techniques.

Safe Banking Tip

Check your account regularly from a safe location

Checking on your account often can help put your mind at ease and help you spot unusual activity before further damage is done. Always check your account using secure channels and at locations where your account cannot be easily compromised.