AI Powered Threats: Why Guarding Your Identity and Finances is Harder Than Ever

As Artificial Intelligence (AI) continues to expand into our daily lives (whether we know it or not!), it has the potential to have significant positive impacts on many different levels. However, the saying “with great power comes great responsibility” seems incredibly fitting as technology gives “bad actors” and criminals new and surprising ways to take advantage of even the most skeptical among us. AI has significantly complicated efforts to avoid scams and financial exposure by enabling cybercriminals to create more sophisticated, convincing, and scalable attacks.  

We’ve already heard multiple stories from clients where they were either victims of fraudulent charges or targeted by cybercriminals in an effort to extract sensitive information. So, in the spirit of shedding light on how these scams may present themselves, here’s how AI contributes to these cyber security challenges: 

• Advanced Phishing and Social Engineering: AI tools, like large language models, can generate highly personalized and convincing phishing emails, texts, or voice messages that mimic legitimate sources. These messages often use data scraped from social media or breaches to tailor content, making it harder to spot fakes. For example, AI can replicate a bank’s tone or a friend’s writing style, tricking users into sharing sensitive information or clicking malicious links. 

• Deepfakes and Voice Cloning: AI-driven deepfake technology and voice cloning can create realistic audio or video impersonations of trusted individuals, such as CEOs, family members, or bank officials. Scammers use these to deceive people into transferring money or revealing credentials. A 2023 report noted cases where AI-generated voice scams tricked victims into sending thousands of dollars, believing they were helping a loved one. 

• Automated Fraud at Scale: AI enables scammers to automate and scale attacks, targeting millions simultaneously. Bots powered by AI can scan for vulnerabilities, exploit weak passwords, or send tailored scam messages across platforms like email or text messages, overwhelming traditional detection methods. 

• Credential Stuffing and Data Exploitation: AI algorithms analyze massive datasets from breaches (available on the dark web) to execute credential-stuffing attacks, where stolen usernames and passwords are tested across multiple sites. This increases the likelihood of unauthorized account access, exposing financial details. 

• Fake Websites and Ads: AI can generate professional-looking fraudulent websites or ads that mimic legitimate businesses, luring users into entering payment or personal information. These sites often rank high in search results due to AI-optimized SEO tactics, making them harder to avoid. 

• Evolving Malware and Ransomware: AI-powered malware adapts to evade antivirus software, while ransomware-as-a-service platforms use AI to target high-value victims efficiently. These attacks can lock users out of financial accounts or encrypt sensitive data, demanding payment for access. 

• Exploiting Trust in AI Systems: Scammers leverage public trust in AI-driven tools, like chatbots or robo-advisors, to create fake platforms that steal data or funds. For instance, a fraudulent AI investment bot might promise high returns but end up stealing those funds instead. 

Here are some things that you can do to help mitigate the risk that AI poses to your data and finances.  

Mitigation Strategies: 

• Verify Sources: Double-check unsolicited communications using official contact details, not those provided in the message. This is why any money movement requests with us require your verbal authorization. We take this responsibility very seriously, even if an extra communication sometimes feels inconvenient or unnecessary. 

• Use AI Detection Tools: Employ AI-based fraud detection software offered by banks or cybersecurity firms to flag suspicious activity. 

• Strengthen Defenses: Use strong, unique passwords, two-factor authentication, and reputable antivirus software to counter AI-driven attacks. 

• Stay Skeptical: Question overly urgent or too-good-to-be-true offers, especially those involving AI-generated content like deepfakes. If it doesn’t feel right, let us know and we will do our best to help assess the situation with you.  

• Monitor Accounts: Regularly check financial accounts and credit reports for unauthorized activity.