Artificial Intelligence (AI) is changing our world positively, but there are growing concerns about AI being used to dupe people. According to a survey, 69% of people believe that criminals are more advanced at using AI to carry out financial fraud than banks are at using AI to prevent fraud. This article lists 12 common AI scams used to rob people of their money.
Deepfake Impersonation Scams
Deepfakes refer to false audio, video, and image content almost indistinguishable from real content. Scammers use advanced AI techniques to create real-looking fake content to dupe people. Since deepfakes have hyper-realistic visual accuracy, people can easily fall for such scams. In an alarming instance, a cybercriminal used deepfake to impersonate a company’s CEO and convinced the employee to transfer $243,000 from the company’s account.
AI Romance Scams
It is one of the most dangerous scams because it exploits victims’ emotions and trust before conducting the financial crime. Fraudsters build fake online profiles on dating and social media platforms to conduct AI romance scams. Everything from the profile picture to messaging is AI-generated to lure people into romantic relationships. Once a person falls into their trap, they begin extracting money in numerous ways. 19,000 Americans have fallen victim to this scam, losing approximately $1.3 billion.
Investment Frauds
FTC revealed that investment frauds were the costliest in 2023, attributing to $10 billion+ in financial losses. These scams use AI to deceive victims by making false claims or promising unrealistic returns with minimal or no risk. Scammers use AI to create fake profiles, develop real-looking fake websites, time-sensitive opportunities, etc., to appear legitimate. Some cybercriminals also run Ponzi schemes using AI to scam vulnerable people. In one instance, a fraudster used an AI trading bot to defraud investors of over $3.4 billion by promising guaranteed returns.
AI Job Scams
Job scams have increased by 118% in 2023 compared to the previous year. These scams are an emerging threat to vulnerable job seekers who often fall for fake job postings or phony listings created by AI. Cybercriminals pose as recruiters and extract sensitive information during the fake ‘interview’ process. This information is later used to steal candidates’ identities to facilitate fraud. People have lost approximately $367 million to these scams in 2022, 76% higher than the previous year.
AI-Enabled Phishing Attacks
Phishing attacks aren’t new, but AI has made them harder to detect on account of suspicion. Fraudsters are using AI to create deceptive emails, messages, etc., that pretend to come from authentic sources. Most of these emails and messages are intended to make people click on given links or share their sensitive information using fake urgency tactics. Once done, they lose money either instantly or soon after that. Research showed that nearly 60% of people have lost money to AI-automated phishing, calling for greater awareness and safety measures.
Medicare Scams
These scams primarily target senior citizens or Medicare recipients. It is a type of identity theft scam wherein fraudsters pretend to be Medicare representatives. They attempt to steal victims’ social security numbers, bank account details, etc., to submit false claims to Medicare or carry out financial frauds using the victim’s identity. Medicare scams drain Americans of approximately $60 billion a year, and the numbers are continuously increasing.
Cryptocurrency Scams
Cryptocurrency scams are designed to extract money from people by promising unrealistic, quick, or risk-free returns. Crypto scammers received approximately $679 million from alleged scams in the first half of 2024, resulting in massive financial losses to investors. While cybercriminals use various tactics to conduct these scams, deceptive deepfake media is among their top approaches. Elon Musk’s deepfake livestream videos are the best example of AI-driven cryptocurrency scams that show how people are manipulated into giving their money.
Voice Cloning Scams
Voice cloning scams are relatively new, wherein cybercriminals use advanced AI tools to imitate people’s voices to obtain money. Speech synthesis tools have made it easier to clone any person’s voice using a short snippet of their original voice. If you upload your videos on any social media platform, scammers can use them to clone your voice and create fake audios that sound exactly like you. Your friends’ and family members’ voices can also be cloned to make you send money. A businessman in Houston recently lost $20,000 to a voice cloning scam.
Real Estate Scams
Cybercriminals are using advanced AI techniques and tools to hijack high-stake financial transactions in real estate dealings. They mostly scam potential property buyers, sellers, and renters using AI deepfake media by impersonating realtors or other parties involved in the dealing. The FBI received approximately 9,521 real estate-based scam complaints in 2023 alone, amounting to $145,243,348 in losses. Another incident drew massive attention wherein a financier was duped into wiring $25 million to scammers.
Identity Theft Scams
Identity theft scams are among the most dangerous because they involve using your personal information, sensitive details, etc., without your knowledge and consent. Scammers use AI technology like deepfake, AI-powered password cracking, etc., to steal anything from driver’s licenses to credit card details, bank account numbers to passports. It is later used to carry financial frauds, leaving victims with damaged credit, wrongful arrests, and other consequences. FTC received approximately 231,724 identity theft complaints in Q4 of 2023 alone, raising calls for greater awareness.
Shopping Scams
As people gear up to shop more online during the holiday season, so do scammers. They carry numerous shopping scams that lure shoppers by offering deals that are too good to be true. Scammers use generative AI to create authentic websites, list non-existent products at unbelievable discounts, use deepfake technology to create celebrity endorsements for their products, etc., to steal shoppers’ bank details or make them pay for fake products. 1 in 3 Americans fall for such shopping scams during the holiday season, resulting in massive financial losses.
Zelle Scams
Zelle offers a convenient way to transfer/receive money directly to another/own bank account. Since most transfers are real-time and irreversible, they have attracted scammers’ attention. They use advanced AI tools to create fake utility bills, bank messages, spoof fraudulent calls, etc., that appear legitimate. Since they sound and look genuine, many fall for it and end up transferring funds to scammers. Zelle users reported losing approximately $440 million in 2021, which is expected to reach $1 billion by 2025.
