AI-powered scams are on the rise
December 23, 2024
Cybersecurity

AI-powered scams are on the rise

Making fraud harder to spot

As artificial intelligence (AI) technology advances, scammers increasingly use AI tools to create more convincing and harder-to-detect fraud. From deepfakes to personalised phishing attempts, AI is transforming the way criminals operate, making scams feel more real and challenging to identify.

Experts at Psono.com are raising the alarm over these emerging threats, which range from AI-powered voice and video impersonations to clone phishing emails and gift card fraud.

Understanding these modern scams is critical for protecting personal information and finances.

1. AI-Powered Scams

One of the most alarming developments in fraud is using AI to mimic familiar voices and faces. Scammers can now create realistic voice recordings and videos of family members, friends, or colleagues using content scraped from social media. These deepfake technologies are often used to ask for money or sensitive personal information, making the scams seem incredibly believable.

What to Do: If you receive an unexpected request, ask the individual to provide details only they would know. If their response seems vague or incorrect, it is a red flag that the request may be fraudulent. Always confirm by contacting them through a known, trusted communication method.

2. Gift Card Scams

Gift card fraud is another prevalent scam that AI has made more manageable. Scammers now can analyse individuals’ online shopping habits, allowing them to send targeted, convincing requests for gift cards from retailers that victims frequently shop with, particularly around busy shopping seasons. These gift cards are quickly redeemed once the codes are shared, resulting in financial loss.

What to Do: If someone asks you to buy gift cards, especially for urgent reasons like resolving a problem or paying a bill, it is highly likely to be a scam. Always verify the request directly with the person or organisation before acting.

3. Vishing

Vishing, or voice phishing, is a telephone scam in which criminals impersonate trusted organisations, such as banks or government agencies. The scammer often creates a sense of urgency by claiming to have detected “suspicious activity” on your account to pressure victims into sharing sensitive information such as account numbers or PINs.

What to Do: No legitimate organisation will ask for sensitive information over the phone. If you are unsure about the request, hang up and call the organisation back using a verified contact number. Always take a moment to verify any request before acting on it.

4. Smishing

Smishing involves fraudulent text messages that often mimic delivery updates or account alerts. These messages target online shoppers to steal login credentials or spread malware. These messages may look convincing, especially if they contain links to websites designed to capture personal information.

What to Do: Always check the sender’s phone number. It is likely a scam if it does not match the organisation’s official number. If unsure, verify the message directly with the company before clicking on any links or providing any information.

5. Clone Phishing

Clone phishing occurs when cybercriminals create near-identical copies of legitimate emails, such as receipts or notifications, replacing the original links or attachments with malicious ones. The familiarity of the email makes it easier for victims to fall for the scam.

What to Do: Always check the sender’s email address and hover over links to ensure they are genuine before clicking. If anything about the email seems off, contact the sender directly using their official contact details to confirm its authenticity.

6. Social Media Phishing

Social media platforms are becoming increasingly common targets for phishing attacks. Scammers may create fake profiles or hack existing ones to send messages that mimic giveaways or urgent requests, hoping to trick victims into sharing personal details or login credentials.

What to Do: Avoid clicking on links from unsolicited messages, and always verify the legitimacy of any requests. Double-check login pages to ensure they are authentic before entering any personal information.

7. Man-in-the-Middle Attacks

Man-in-the-middle attacks occur when cybercriminals intercept communications between two parties, such as passwords or banking details, especially over unsecured public Wi-Fi networks. Locations like cafés or airports are prime targets for these attacks, where hackers can monitor your data traffic.

What to Do: When using public Wi-Fi, avoid logging into important accounts. If necessary, use a Virtual Private Network (VPN) for added security. Always ensure the websites you visit are secure by looking for “https://” in the URL.

8. Ransomware

Ransomware attacks are designed to lock you out of your files or devices by encrypting them and demanding payment to unlock them. These attacks often begin with phishing emails or fake downloads and are used to target sensitive personal data, such as photos or documents.

What to Do: Back up essential files offline, and never click on suspicious links or attachments. If you fall victim to a ransomware attack, report it to the relevant authorities and seek professional assistance in dealing with the aftermath.

9. DNS Spoofing

DNS spoofing is an attack in which hackers redirect users to fake websites that appear legitimate. These sites are designed to steal sensitive data, such as passwords or credit card information.

What to Do: Always double-check website addresses before entering any information, and look for the secure “https://” prefix. Consider using tools that protect against DNS attacks to add an extra layer of security.

10. Fake Job Offers

Scammers have also taken advantage of job seekers by posting fake job offers that promise high pay or remote work opportunities. These scammers often ask for fees or personal information under the guise of processing your application or conducting a background check.

What to Do: Research the company thoroughly before providing personal information or paying fees. Confirm job offers directly through official channels to ensure they are legitimate.

Expert Insights

Sascha Pfeiffer, CEO of Psono, commented on the evolving nature of scams, noting that AI has made fraud more personalised and more challenging to detect. “Scammers are using advanced tools to mimic voices, create fake videos, or send messages that seem to come from trusted contacts,” Pfeiffer explained.

“It is now easier than ever to fall for a scam, whether it is a message from a friend asking for help or an offer from a favourite store. Staying vigilant is key, as these scams can lead to significant financial losses.”

Pfeiffer also stressed the importance of never sharing highly personal information, such as passport details or credit card CVV codes, through insecure channels like email or phone calls.

“If you ever receive a request from a close friend or family member asking for help, take extra precautions. Ask specific questions only the real person would know to ensure you are speaking to the right person.”

Hero image: AI makes scams feel more real and challenging to identify. Credit: Sora Shimazaki

Arnold Pinto

Arnold Pinto

Arnold Pinto is an award-winning journalist with wide-ranging Middle East and Asia experience in the tech, aerospace, defence, luxury watchmaking, business, automotive, and fashion verticals. He is passionate about conserving endangered native wildlife globally. Arnold enjoys 4x4 off-roading, camping and exploring global destinations off the beaten track. Write to: arnold@menews247.com
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