How to Protect Yourself from AI-Powered Financial Scams

Yes. You've heard of artificial intelligence by now. And while you may believe AI is just for fun – writing emails and generating fun images – cybercriminals are using everything at their disposal to launch phishing attacks that can drain your bank account or crypto wallet with a single click. AI is one of the scammers’ best tools for manufacturing fake identities and pretending to be legitimate financial institutions. 

How?

Cybercriminals manufacture identities to gather sensitive data at scale. Banking and other financial services are getting quite advanced, and we've been able access everything from the comfort of our smartphones for years. Because of this, fraudsters are putting all their power into impersonation. Whether that’s impersonating official representatives, mirroring websites, or masking themselves as your friends with a deepfake or a voice clone, they will stop at nothing. 

AI is like a superpower for hackers, and here’s why. Let’s say you had a super smart hacker without AI. They would be able to impersonate one or two people at a time, a maximum of three. The limitation of time, the need to eat food, and sleep are all restrictions for humans. But with AI in the mix, suddenly, you’re scaling that person’s output a thousand times. Plus, they’re not limited by all the things that humans need to do to keep going. 

How to protect yourself from AI finance scams? 

In the age of AI finance fraud like PayPal scams, you need to be aware of the dangers and also put in a few safeguards.

Research the person or organization

Anyone legitimate will appreciate you taking the time to look at their credentials, organization, or history of success. If they get defensive, just drop the call and pretend like you lost connection or you received another phone call while you do a bit of research. And when it’s time to get back at them, use the official number or source to confirm it was really them who called you. Impersonation happens more often than you think. 

When looking at someone's background you want to ensure they have a DEEP google history. In our digital era, there is no excuse for someone not to have a large internet presence and a variety of social media profiles. Try also to get them to talk face to face via video chat.

Be wary of pressuring tactics

Scam offers always try to get you to buy fast. That can be anything from a last-minute offer, a bulk of emails telling you the offer is not going to be available ever again, or a massive timer on a website that claims the opportunity will be lost. Listen to your gut – if you feel uncertain about acting on something quickly, listen to your intuition.

They’ll use every tactic in the book, like losing out on a reward or missing out on a life-changing opportunity. Don’t fall for it. Take a few deep breaths, go for a walk, and pause. Speed is a criminal's ally, but you want to be more thoughtful than that.

Let your friends and family in

There’s no one better to give you a slap of reality than your friends and family. Especially when something sounds too good to be true. Most people have been burned by a pyramid scheme or a finance scam, so just explaining the new thing you want to buy or invest in might be enough to tick their red flags. If your friends and family are suspicious, it's worth-it to listen to their caution and take more time to evaluate. (This works for romance-related scams as well!)

Be wary of unfamiliar profiles, phone numbers, and email accounts

In the age of deepfakes, your eyes and ears can lie to you. Anyone who’s posted a video online can be a target. If you see your friend or an influencer contacting you from an unfamiliar profile, phone number, or email account, that’s the first red flag to be wary of. 

Create a secret phrase with your family and friends

Voice copying is real, and you often need to confirm whether the person on the other side is really them. Especially when it comes to your family. Get together and talk about a secret phrase in person, never through email or social media, because those accounts can be compromised.

If you receive a phone call from your kids that they got in trouble and you need to send them a thousand bucks, just ask for the secret passphrase. That way, you’ll know if it’s real or if someone is impersonating them.

Use bank transfers or credit cards to purchase things online

Cash, crypto, and gift cards are not options you should consider when dealing with scammers. That’s because you can never reverse the payments. Credit cards and bank transfers can be reversed, and you can dispute the purchase. Always use them as your go-to option for online payments.

The TL:DR

I don't share this post to scare anyone, but I think knowledge/awareness is power. The good news is that law enforcement and ethical hackers have been hard at work trying to make AI a force for good and turn it into a criminal justice tool. As technology advances, we could soon see the day when AI will be used to protect us from financial scams. As AI is still relatively new, it's important we keep a cautious eye out for scams.