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Financial scams have become more sophisticated and believable in recent years, thanks to the use of artificial intelligence (AI). Scammers use deepfake technology combined with FaceTime calls, phone calls, and emails to appear genuine and trick unsuspecting victims. They pose as prospective lovers, close friends, or even government agents from the IRS to persuade people to give them money. Experts warn that fraud could reach unprecedented levels as it becomes almost undetectable. Therefore, they recommend several ways to protect people from these scams.
Breaking the content into several sections:
1. How AI is used in financial scams
2. The scale of the problem
3. Who is most vulnerable to fraud?
4. Examples of AI-enabled scams
5. Recommendations to protect against financial scams
Section 1 – How AI is used in financial scams
Scammers use AI-enabled technology in various forms of scams to better dupe their victims. For example, with ChatGPT, fraudsters can send more convincing letters requesting money. They have the computers writing the scripts or writing the letters, says Adam Brewer, a tax lawyer. It’s just going to be a lot harder for the average person to detect. Fraudsters also use deepfake technology to alter their image and even the sound of their voice to appear as another person.
Section 2 – The scale of the problem
The Federal Trade Commission data released in February shows that consumers lost around $8.8 billion due to fraud in 2022. That’s a 19% increase over the previous year. The actual scale of the problem may even be higher than reported, as most online scams go unreported.
Section 3- Who is most vulnerable to fraud?
Kathy Stokes, AARP’s director of fraud prevention, points out that fraud doesn’t solely affect older Americans. The recent FTC data indicate that young people fall victim to fraud more frequently than seniors. Versions of AI have been part of fraud for a long time. But now, this generative AI just really creates so much more sophistication to the way they target people, says Stokes. Elderly men with assets like housing wealth, retirement savings, or insurance policies tend to lose more as the criminals target those assets.
Section 4 – Examples of AI-enabled scams
Criminals use AI technology to scam Americans in various ways. The romance scam is one example. Fraudsters pose as prospective lovers and deceive victims out of their money. They can use deepfake technology to alter their image and sound like an attractive female. Lonely, elderly men are particularly susceptible to this form of fraud. Another scam is ransom fraud, in which people might receive a call from a family member or close friend in the middle of the night urgently pleading for money. The use of generative AI for replication and voice makes it look real.
Section 5 – Recommendations to protect against financial scams
Experts recommend several ways to protect oneself from financial scams. One way to avoid ransom fraud is by creating a family password that a fraudster wouldn’t know. To deter romance fraud, adult children can advise their parents not to send money to strangers. Potential victims should watch out for messages that put them in a heightened emotional state, such as winning lots of money or the beginning of an exciting, new romantic relationship. Stokes recommends conducting a reverse image search to verify someone’s identity on social media. People should be extremely suspicious of government requests that demand immediate action. The best defense against fraud is awareness of the threat.
Conclusion:
As scams become more sophisticated and believable, it’s essential to be aware of their existence and how they work. People should watch out for messages that put them in a heightened emotional state and be skeptical of government requests that demand immediate action. People can create a family password to avoid ransom fraud and advise their parents not to send money to strangers. Conducting a reverse image search is one way to verify someone’s identity on social media.
FAQ:
1. How do scammers use AI in financial scams?
Scammers use AI to create more convincing emails, phone calls, and messages to appear as genuine and trick victims. They also use deepfake technology to alter their image and even the sound of their voice.
2. Who is most vulnerable to financial scams?
Young and old people both fall prey to financial scams. Elderly men are particularly susceptible as the criminals target their assets.
3. What is the best defense against financial scams?
Awareness of the threat is the best defense against financial scams. People should be skeptical of government requests that demand immediate action, watch out for messages that put them in a heightened emotional state, and conduct a reverse image search to verify someone’s identity on social media.
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