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How AI Is Supercharging Financial Fraud–And Making It Harder To Spot

Sep 18, 2023 - forbes.com
The article discusses the increasing use of generative AI by fraudsters to create convincing scams. The AI technology, such as OpenAI's ChatGPT, can generate flawless grammar and mimic the style of a specific individual, making phishing attempts more believable. The article highlights several instances where AI was used to clone voices and superimpose faces on videos, fooling not only potential victims but also the programs used to prevent fraud. The article also mentions that the rise of AI-enabled scams is threatening current fraud-prevention measures, such as voice authentication and liveness checks.

The article further explains that fraudsters are using AI to outsmart fraud-prevention specialists and tech companies that verify consumer identities. These criminals range from lone wolves to sophisticated groups with multi-layered organizational structures and highly technical members. The article concludes by suggesting that it will take AI to catch AI, and provides tips to protect oneself against AI-enabled scams, such as enabling multi-factor authentication, being private on social media, screening calls, creating passphrases, and asking random questions to throw off potential scammers.

Key takeaways:

  • Generative AI is increasingly being used by fraudsters to create convincing scams, including flawless text messages, voice cloning, and video manipulation.
  • These AI-powered scams are threatening even state-of-the-art fraud-prevention measures such as voice authentication and liveness checks.
  • Consumers reported losing $8.8 billion to fraud in 2022, up more than 40% from 2021, with the biggest losses coming from investment scams and imposter scams.
  • Fraud-prevention companies are trying to innovate rapidly to keep up with these AI-enabled scams, looking at new types of data to spot bad actors and using AI to catch AI.
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