Artificial intelligence (AI) has transformed the way we live, work and interagent, offering incredible advantages in many areas, including finance. However, although AI has simplified and provided many tasks, it is also used by fraudsters who create sophisticated scams. With the ability to analyze data, imitate human behavior and generate false content, AI allows new types of financial fraud that are more difficult to detect and easier to make.
Such a method of Fraud based on AI is vocal cloning for imitation. Using advanced voice cloning technology, fraudsters can reproduce a person’s voice with just a short audio sample. They use it to usurp the identity of someone that the customer knows, as a family member or a representative of the trusted bank, to manipulate them in the transfer of money or the sharing of sensitive information. These calls often create a sense of urgency, pushing customers to react without caution. To stay safe, customers must avoid sharing sensitive information based solely on vocal confirmation, in particular under pressure, and verify the identity of the appellant thanks to known contact details.
Another risk comes from Deepfakes, which use AI to create videos and a hyper realistic sound that seem authentic. Deepfake technology can use the identity of bank officials, executives or even family members, convincing customers to reveal confidential information or financial transactions. Customers must verify the identity of anyone requesting sensitive information, even if they seem familiar. Recall on official numbers and double verification details can help confirm authenticity.
PHISHINGS based on AI and personalized scams have also become more advanced. AI allows “spear phishing”, in which crooks analyze social media and other online data to develop personalized messages that seem legitimate. For example, someone who recently announced a big problem on social networks could receive a phishing email that seems to come from a high-level frame, requesting sensitive information. To protect themselves, customers must be cautious with unsolicited messages, check the sender and avoid clicking on links from undeclared sources, even if the message seems authentic.
Another trend concerning is false customer service and social engineering robots. Fraudsters create false customer services and chatbots that simulate real agents to collect account details or directly to users to fraudulent payment portals. Customers should only access customer service via verified channels, such as websites or official applications, and be wary of unsolicited customer service offers. Pay particular attention to the URLs, which may contain slight spelling or variations, can help prevent the fall of these scams.
Investment scams and the false analysis generated by AI are also increasing. The AI can create false investment analysis reports, financial forecasts and even simulated platforms, attracting customers to fraudulent programs. These scams often promise high yields with little risk, creating an illusion of credibility. Fraudsters can show impressive yields on small investments to strengthen confidence before convincing victims to invest larger sums, then disappear with money. To stay safe, customers should independently verify any investment opportunity, consult trust advisers and be skeptical about “too beautiful-toothbinding” yields.
AI is also used to create false criticism and manipulation of social evidence. By generating numerous false opinions or testimonies for fraudulent financial products, crooks strengthen false credibility, which can mislead clients induced by trusting illegitimate services. Customers must be careful with too positive or wave criticism, count on renowned sources and consult trust advisers before making decisions according to social evidence.
In addition to these specific security advice, several general measures can take to protect themselves from the fraud led by AI. Activation of safety features such as multi-factor authentication (MFA) and biometric connections can add an additional safety layer. Limiting shared personal information on social networks can help prevent fraudsters from personalizing scams. The use of solid and unique passwords and update them regularly can protect accounts, and a password manager can safely manage complex passwords. Installation of confidence antivirus and anti-phishing software on devices also helps to block malware.
It is essential to remain informed of the latest trends in Fraud by AI thanks to cybersecurity opinions and alerts of financial institutions, as is the regular monitoring of accounts and credit reports for an unusual activity. Finally, the use of channels verified for all financial transactions and avoid unlined emails or telephone calls on financial issues can prevent many scams.
By remaining aware of these risks and following these best practices, customers can considerably reduce their chances of being victims of Fraud based on AI. While AI improves financial services, customer vigilance and proactive security measures are crucial to safeguarding the Fraud led by AI.
This article is written by Siddharth Bhat, CTO, Religare Brooking Ltd.
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