AI Scams & How to Avoid Them

The rise of AI technology has also opened the door to more sophisticated and persuasive scams. Fraudsters use these AI tools to create convincing fake personas like brokers and lenders, and produce testimonials from non-existent customers.

Gone are the days of obvious red flags like poor grammar and misspellings. With AI tools, scammers can create persuasive narratives that can trick even the most discerning.

So, the question now is, how do you protect yourself from these AI scams? The best way to do that is by knowing what to look out for.

What are the different types of AI scams?

Scammers use AI to clone voices, make fake videos, and create personalised messages to fool their victims. Here are common AI scam methods to be aware of:

AI voice cloning

Scammers can use AI to replicate someone’s voice and use it to trick their victims. Usually, the scheme works like this: you get a call from someone pretending to be a friend or family member in distress. With AI voice cloning, the scammer will sound very similar to said friend or family member, making it all feel real.

The scammer will try to convince you to send them money through wire transfer or sometimes cryptocurrency. When scammers like this call, it’s typically using an unrecognised number. If someone is calling you from an unidentified number claiming to be someone you know, it’s best to stay cautious and contact that person directly through their known contact details.

Deepfake videos

Deepfake videos use the likeness of celebrities or politicians to create fake videos and audio recordings. Often, these videos have celebrities or politicians endorse fake products or investment schemes or ask for monetary donations. You’ll usually encounter these videos as posts or ads on social media.

Fraudsters use deepfake videos to lure people into their scams by using a familiar face or an established name. When you see something advertised online, always check its veracity. Do your research and see if that product is real or speak with a finance expert before going through with an investment.

AI-generated phishing scams

Phishing scams have evolved from typo-riddled texts or emails with vague messaging to more personal and coherent emails, texts, and social media messages. These AI-generated phishing messages could contain personal details like your location, place of work, or specific interests that they found online. The goal of these scams is still the same: to make you click a link and steal your money or sensitive information.

The best way to avoid scams like these is to not click on any links or download attachments in emails from senders you’re not familiar with. Always make sure the person messaging you is legitimate. If you receive a text claiming to be from your bank encouraging you to click a link, for example, call a customer service representative to double-check its veracity.

How to protect yourself from AI scams

With AI scams becoming more prevalent, you need to know how to avoid them. Here are a few tips to keep in mind:

• Always verify identities – Familiar faces or voices make it easy for scammers to gain trust. If you receive a call or message from unknown numbers saying they’re from someone you know, always verify with the person directly on a known number.
• Don't believe everything you see online – Not every ad you see online is endorsing a legitimate product or investment. Be sceptical of any investments that sound too good to be true because they probably are. Do your due diligence before making any purchases or investments.
• Think before you act – Often, scams will use urgent language or cause distress to make their victims act immediately without thinking. When you receive urgent calls or messages, it’s best to take a step back and consider the situation objectively.
• Don't send your information to unverified contacts – Your lender or broker already knows your personal and financial information. It’s highly unlikely for them to ask about it through a number you don’t recognise. If you do receive an email or text message asking to verify your contact information, go directly to your lender or broker’s direct line.