Protecting Yourself from AI Scams: A Financial Advisors Guide

As you use the internet, it's important to know about the changing fraud risks caused by Artificial Intelligence. Scammers prefer AI because it allows them to analyze large amounts of data quickly. It also helps them identify targets more effectively. Additionally, AI enables scammers to make their scams appear more authentic, thereby increasing their chances of success. 

By equipping yourself with the right knowledge and skills, you can mitigate many of these risks. Much of this comes down to staying informed about the latest scams and fraud tactics. By doing this, you’re improving your ability to detect potential risks before they ensnare you in their deceptive web. Here are a few of the most popular: 

Phishing Scams 

AI-powered phishing scams are on the rise. Scammers are using AI to create increasingly sophisticated emails and messages that can fool even the most tech-savvy people. These scams often pose as trusted organizations like banks or government agencies, and they can be very difficult to detect.

You might receive an email that appears to be from your bank. The email will ask you to update your account details by clicking on a link. The website may look real, but it's actually a fake site designed to steal your login information.

To stay safe from AI phishing scams, be careful and avoid clicking on links in emails or messages from unfamiliar senders. You should also be wary of any email or message that asks you for sensitive information, such as your Social Security number, credit card number, or login credentials.

If you are unsure about the authenticity of an email or message, it is advisable to contact the organization directly. This can be done by using a known phone number or visiting their official website.

Imposter Scams 

Scammers are increasingly using AI technology to impersonate trusted entities or individuals, such as government departments or utility companies. They can mimic voices and create realistic scenarios to deceive victims into believing they are genuine.

You may get a call from someone saying they're from the IRS, asking for personal info or money right away. The IRS will never call you demanding immediate payment, even if the call seems believable.

If someone from a trusted organization contacts you, don't give personal info or make payments without confirming their identity first. If you are unsure about the authenticity of a call or message, simply end the call or close the message. Then, proceed to contact the organization directly. If you think you may have been the victim of an imposter scam, report it to the authorities immediately.

Tech Support Scams 

Tech support scams are a type of fraud where scammers pretend to offer assistance with computer issues. They trick people with pop-ups, calls, or emails to get access to devices or make them pay for unnecessary services.

Your computer may display a message indicating a virus and instructing you to call a toll-free number immediately for assistance. This is a scam. Legitimate tech support companies will never contact you out of the blue.

When in doubt, it's safer to be cautious and avoid taking any chances.

Grandparent Scams

Grandparent scams exploit emotions by pretending to be a grandchild in distress, often requesting money urgently. AI technology enables scammers to research and personalize their approach, making the scam more convincing.

Someone may call you pretending to be your grandson. They will ask for money to help them get out of jail. Rest assured, your grandson is probably not in jail, this is a scam and you should hang up.

Deepfake Scams 

Deepfake technology, powered by AI, is a growing threat in the world of fraud. Scammers can use deepfakes to create fake videos and images of famous people that look real and convincing. These deepfakes can then be used to scam people into believing lies or investing in fraudulent schemes.

For example, you might see a deepfake video of a celebrity on social media promoting a new cryptocurrency or investment opportunity. The video may look real, but it is actually computer-generated. If you fall for the scam and invest your money, you will likely lose it all.

Malware Attacks

AI-powered malware attacks are on the rise, and they are becoming increasingly sophisticated and difficult to detect. Scammers use AI to create malware that can evade traditional security measures and exploit vulnerabilities in computer systems and networks.

You might receive a file that appears safe. However, this file actually contains malware. The malware is designed to use artificial intelligence in order to evade detection by your computer's security software. After the malware is installed, it can take your personal information, control your computer, or attack other devices on your network.

AI-powered malware is a serious threat, but there are steps you can take to protect yourself:

• Keep your computer's security software up to date and run regular scans.

• Be careful about what websites you visit and what attachments you open.

• Be wary of any emails or messages that ask you for personal information or financial details.

• Use a strong password manager to create and store unique passwords for all of your online accounts.

• Enable two-factor authentication (2FA) on all of your online accounts whenever possible.

Bottom Line

Protecting oneself from AI-driven fraud requires a combination of awareness, caution, and education. Be careful of unexpected requests for personal info, urgent payments, or device access, like emails, calls, or pop-ups. 

Independently verify the identity of individuals or organizations contacting you. Don’t rely solely on the information provided by the caller or the content of an email. Use official contact information from trusted sources to reach out and confirm the authenticity of the communication.

Stay updated on scams, spot AI fraud, and follow tips from trusted sources to protect your finances in the digital era. 

Sources: 

www.aarp.org/money/scams-fraud/info-2019/phishing.html

consumer.ftc.gov/features/imposter-scams

www.ncoa.org/article/top-5-financial-scams-targeting-older-adults

www.aarp.org/money/scams-fraud/info-2019/tech-support.html

Disclosures:

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This material is provided as a courtesy and for educational purposes only.  Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.