Artificial Intelligence in the Hands of Scammers: New Fraud Schemes

AI Fraud 

The development of artificial intelligence (AI) technology has opened up new opportunities not only for business and science but also for scammers. Modern algorithms enable the analysis of vast amounts of information, adaptation to user behavioral patterns, and imitation of human behavior. This has led to the emergence of complex and hard-to-detect fraud schemes where attackers use AI to manipulate data, forge voices, and hack security systems.

The most common areas of AI fraud:

• Fake voices and videos (Deepfake). The generation of fake audio and video recordings allows scammers to impersonate other people. This technology is actively used in blackmail, political manipulation, and financial fraud.
• Bots posing as real people. Artificial intelligence enables the creation of social media and dating site accounts that look convincing and behave like real users. This is used in romantic scams, financial pyramids, and sales scams.
• Automated attacks. Attackers use AI to crack passwords, bypass authentication systems, and conduct cyberattacks on banking services.
• Digital footprint analysis. Neural networks analyze user behavior, their correspondence, geolocation, and other data to tailor fraud schemes to a specific victim.

Modern security systems are currently unable to fully protect users from AI fraud, so constant development of new protection methods is required.

Artificial Intelligence in Scams

AI is increasingly being used in financial fraud, allowing scammers to scale attacks and make them more convincing. One of the key threats is advanced phishing. Whereas phishing emails were previously easy to recognize due to mistakes and unnatural phrases, today AI algorithms analyze user speech styles and create personalized messages that are difficult to distinguish from real ones.

Another popular scheme is vishing, or voice phishing. Using speech synthesis technologies, criminals create calls featuring the voices of company executives, bank employees, or relatives of the victim. This is used for extortion, changing payment details, and obtaining confidential information.

Other AI-based scam schemes:

• Deepfake video calls. Image forgery allows scammers to impersonate acquaintances or business partners in video conferences.
• Automated consultations. Fake chatbots, allegedly representing banks or investment funds, offer victims “profitable” investments.
• Forgery of official documents. The generation of fake passports, certificates, and contracts is used in banking fraud and corporate espionage.

AI makes fraudulent schemes more difficult to detect, and victims often do not realize they have been deceived.

New Fraud Schemes

With the development of technology, scammers are coming up with increasingly sophisticated ways of deception. Artificial intelligence allows them to manipulate people, bypass protection mechanisms, and extract maximum benefit from their criminal activities.

Among the new schemes are:

• Investment frauds. Fake AI consultants offer investments in cryptocurrency, stocks, and startups, promising high returns. However, such projects turn out to be financial pyramids.
• Distortion of stock exchange data. Neural networks analyze market trends and artificially create hype around certain assets, provoking users into unfavorable transactions.
• Hyper-realistic fraudulent websites. Generative models create fake online stores, banking pages, and investment platforms that are hard to distinguish from real ones.
• Attacks on companies via social media. Bots and fake accounts spread false information about brands, triggering a crisis of trust and financial losses.
• Theft of biometric data. Scammers use AI to match fingerprints, recognize faces, and create voice forgeries, allowing them to bypass identification systems.

Such schemes require new protection methods, including enhanced user verification and analysis of suspicious activity.

Financial Risks

The use of AI in fraud leads to significant financial losses for both individuals and organizations. The main threats include:

1. Theft of money through fake calls and emails. Attackers convince victims to transfer money to dummy accounts using realistic voices and correspondence.
2. Compromise of bank accounts. Automated attacks and fake sites allow the theft of login data for online banking.
3. Financial pyramids and fraudulent investments. AI is used to create convincing investment offers that lead to loss of funds.
4. Fake deals and document forgery. Scammers use neural networks to forge contracts and signatures, leading to business losses.
5. Blackmail and extortion. The use of deepfake content to manipulate people can force victims to transfer money to scammers.