The fraud risks posed by Artificial Intelligence

Artificial intelligence (AI) is the development of computer systems that can perform tasks that typically require human-like intelligence, such as learning, problem solving and decision making. AI technologies are used in a wide range of applications, including speech recognition, language translation and image recognition. 

Alun Gordon, MIAA Local Counter-Fraud Specialist explained: ”AI can be used for both legitimate and illegitimate purposes. There is the potential for AI to be used to facilitate fraudulent activities, such as generating fake or misleading information, or automating scams or other fraudulent schemes. AI can also be used to detect and prevent fraud by analysing data and identifying patterns that may indicate fraudulent activity.

"The use of AI in fraud depends on how it is implemented and used. Individuals and organisations should be aware of the potential risks and take appropriate measures to protect themselves from fraudulent activity, whether it involves AI or other technologies.”

Why would a criminal use AI for fraudulent purposes?

• Speed and efficiency: AI can process large amounts of data and perform tasks quickly, which makes it a potentially useful tool for automating fraudulent activities.
• Anonymity: AI can be used to carry out fraudulent activities without leaving a traceable human trail.
• Evasion of detection: AI can be used to generate fake or misleading information that is difficult for humans to detect as fraudulent.
• Personal gain: Fraud is often motivated by a desire to obtain financial or other benefits through deceptive or dishonest means. AI can be used as a tool to facilitate this type of activity.
• Generating fake or misleading information: AI can be used to create fake websites, social media accounts, or other online content that is designed to deceive or mislead people. This could include generating fake reviews or manipulating online ratings to mislead consumers.
• Automating scams: AI can be used to automate scams or fraudulent schemes, such as by sending out mass emails or text messages that are designed to trick people into revealing sensitive information or sending money.
• Spoofing phone numbers or email addresses: AI can be used to create fake phone numbers or email addresses that are designed to deceive people into thinking they are communicating with a legitimate  entity.
• Generating fake documents: AI can be used to create fake documents, such as contracts or invoices, that are designed to mislead or deceive people.
• Evasion of detection: AI can be used to evade detection by generating fake or misleading information that is difficult for humans to identify as fraudulent. This could make it more difficult for authorities to identify and track down cybercriminals.
• Increased sophistication of attacks: AI could be used to increase the sophistication of cyber-attacks, such as by generating more convincing phishing emails or by adapting to the defences of targeted organisations.

How can you protect yourself?

• Implement strong security measures, such as using unique passwords for all accounts, enabling two-factor authentication, and keeping all software and security protocols up to date.
• Be cautious about sharing personal information.
• Be selective about the personal information you share online and be cautious about responding to requests for personal information from unknown sources.
• Verify the authenticity of information and communications.     
• Be sceptical of information and communications that seem suspicious or too good to be true and take steps to verify their authenticity before acting on them.
• Educate yourself about the common signs of fraudulent activity, such as unsolicited requests for personal information or offers that seem too good to be true.
• Report suspicious activity. If you come across suspicious communications, report it to Action Fraud
• Try Genie, Norton’s new AI-powered scam detector that can determine if the text in an email is a phishing or text in SMS is smishing.