Americans fell victim to $12.5 billion in fraud losses last year, according to the Federal Trade Commission. That represents a startling 25% increase over a year ago. The FBI estimates the losses are even larger, over $16 billion. So, what explains the sharp increase, considering that most consumers are far more attuned to cybercrimes? Like so many other questions, the answer is artificial intelligence.
Forget the Nigerian Prince scam (although that tired, old routine still separated Americans from nearly $1 million last year). And gone are the days when phishing emails screamed “bogus” thanks to typos and bad translations. Artificial intelligence has entered the arena and is assisting criminals in producing ever more believable and compelling appeals. It is getting nearly impossible to spot a fake, so it becomes even more essential to question everything that comes to you unsolicited.
Here are a few examples of state-of-the-art tactics, thanks to generative artificial intelligence.
Enhanced phishing attacks. Phishing attacks involving unsolicited emails or text messages attempt to convince the recipient to provide personal information that can then be used to hack into bank accounts or steal identities. The crooks can now run a draft of their handiwork through applications like ChatGPT to clean up grammar and spelling but also to scour your social media to personalize the message and make it more conversational and therefore more credible.
Deepfakes. This is a general term describing ultra realistic reproductions of documents, voices or even video messages. A common tactic is producing identification documents like driver’s licenses, birth certificates or title papers that can be used to steal your identity. These phony papers often include realistic elements like watermarks or other AI-generated images that convey legitimacy.