Artificial intelligence (AI) is revolutionizing the way we live and work. Unfortunately, though, AI is also revolutionizing the way scammers con unsuspecting victims into sharing their personally identifiable information and their money. Here’s what you need to know about AI fraud and how to protect yourself.
AI applications are used in a wide range of fields – from medicine and education, to customer service, transportation and finance – and are becoming increasingly popular for personal use.
AI tools like ChatGPT and Microsoft’s Copilot can be used to help you write emails and create content, assist with your daily tasks and routines, and there are AI tools that can help you manage your personal finances like setting goals, budgeting, tracking expenses and investing. (Learn more about how to put AI tools to work for you.)
Unfortunately, though, AI is also revolutionizing the way scammers con unsuspecting victims into sharing their personally identifiable information and their money. Here’s what you need to know about AI fraud and how to protect yourself.
What is AI fraud?
AI fraud is the use of artificial intelligence to deceive or defraud individuals or organizations. When using AI to pull off a scam, fraudsters use AI algorithms to create convincing fake identities, manipulate social media, generate realistic fake images and videos (AKA “deepfakes”) and more.
The scammers then create fake social media profiles and email addresses using these bogus identities and footage. Often, they’ll pretend to represent celebrities or other famed personalities for soliciting money and information.
In another form of AI fraud, scammers use social engineering tactics to trick people into giving them their personal information or money. They may create fake websites or emails that appear to be from legitimate sources, such as financial institutions or government agencies, and ask people to provide their personal information or login credentials.
AI fraud is especially dangerous because its sophistication makes it difficult to detect. Thanks to AI technology, scammers appear to be legitimate, increasing the likelihood that people will fall for their scams.
Types of AI Fraud
AI fraud is executed in several forms, including:
- AI phone scams using voice cloning
- Phishing
- Identity theft
- Imposter scams
- Deepfakes audio and video
- Fake news
- Social media manipulation
- Chatbot scams
- Fraudulent financial advice
Each type of AI fraud has its own unique characteristics and risks.
For example, with “imposter scams” a fraudster will call or email you and pretend to be someone you know like a family member or company representative – to trick you into sending them money or sharing personal information.
With “voice cloning” the fraudsters use AI to clone people’s voices to sound like celebrities or your own friends and family are calling and asking for personal information or money.
Red flags
Are you being targeted by AI fraud? These red flags may be your first clue of an AI scam:
- Multiple unsolicited emails and/or text messages
- Phone calls that sound robotic or have unnatural speech patterns
- Being asked to provide personal information or login credentials by an unverified contact
- Unusual and/or unexplained activity on your social media accounts
- Receiving financial advice that seems too good to be true
If you notice any of these signs, it’s important to be cautious and investigate further. If the contact claims to be a company representative or from a government agency, do not engage. Reach out to the company directly through their customer service number on their website or your account statement to verify if the communication is legitimate.
It’s always better to be on the safe side when it comes to your personally identifiable information and your money.
Protect yourself
You don’t have to wait to be targeted by AI fraud to protect yourself from falling victim to these scams. Keep your money and information secure by following these precautions at all times:
- Never share sensitive information online or over the phone with an unverified contact.
- Always check the URL of each landing page when banking online or using another platform to share sensitive information. Look for the “s” after the “http” and the padlock icon, as well as the correct spelling of the company’s website to ensure you haven’t been lured into a look-alike scammy site.
- Use strong, unique passwords across all of your accounts.
- Keep your device’s security on its strongest setting.
- Be wary of messages from celebrities asking for money or information.
- Use updated antivirus software on your personal devices.
If you’ve been targeted
If you suspect you’ve been the victim of AI fraud, it’s important to act quickly to mitigate the damage.
First, contact your financial institution to let them know your information has been compromised. Similarly, reach out to your credit card companies to let them know about the fraud. Next, report the fraud to the FTC so they can take appropriate measures in catching the humans behind the scam. You’ll also want to change your passwords and login credentials. Finally, if your identity has been stolen, reach out to identitytheft.gov to learn your next steps.
AI fraud is a growing concern, but there are steps you can take to protect yourself. Follow the tips outlined here and stay safe.
Arizona Financial members with select checking accounts have access to free identity protection services that offer dark web monitoring, credit monitoring, fraud reimbursement and comprehensive identity theft resources. To learn more visit ArizonaFinancial.org/IDProtect.
