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Saturday, May 13, 2023

AI – An Emerging Scam Technology

AI, (Artificial Intelligence), has received a lot of publicity in the last few months with the introduction of ChatGPT by Microsoft to its Edge internet browser. Observers have been quick to point out when AI has given incorrect information, seems to have encouraged racism, and the potential for harm by bad actors. All of this talk might ignore benefits of newer AI technology, but the concerns for harm are real.

One area of concern for fraud watchers is the potential for scammers to use AI to deliver more effective scams that are more convincing and efficient. AARP cites early reports of an apparent enhancement of the Grand Parents scam in a warning to its members.

The Grand Parents scam is a classic fraud that targets older Americans. You receive a call from someone who claims to be your grandchild, niece/nephew, or other younger relative. They claim that they are in some sort of trouble, such as being involved in a car accident then being taken to jail as a result. They say that they need money for bail and legal service. They often implore the target not to tell their parents.

A scammer can fake the identity of the relative initially in the phone call. The target might reveal the name in their initial reaction to the news, helping the scammer with their credibility. A skeptical target, who might be aware of this scam, might quickly pick up on the potential scam and not provide a name in reaction.  

With new AI technology such as ChatGPT4, scammers can create audio that sounds just like a relative. Scammers can more easily research potential targets on social media such as Facebook. From social media they can find out who are relatives for anyone who lists their relatives. They can find voice samples of a relative from a TikTok or Instagram video, then use that sample to create a convincing impersonation.

KIRO TV has reported a potential use of AI in a scam in Pierce County. A mother and father received a phone call from someone they thought was their 16-year-old daughter. To mom and dad, it was unmistakably their daughter. She said that she was in an accident at Walmart. Then a man gets on the phone and says, "If you ever want to see your daughter safe again, you will do what I tell you." Dad heads to Walmart, mom continues talking to the scammer. She was getting ready to go to the bank and withdraw $10,000 in cash. She also texted her daughter to see if that was really her. Then the scammer demanded a wire transfer. At that point, the mother hung up. Meanwhile, the daughter returned the text to say that she was at school.

The difference in this incident of course was that the targets were not grandparents but parents. And the fact that the initial part of the call was so convincing leads to the conclusion that AI was used to simulate the daughter’s voice.

An example of how effective AI generated audio can be is shown by blogger Leo Notenboom in this posting on his “Ask Leo” blog-  https://askleo.com/dont-trust-your-ears/?awt_a=7qbL&awt_l=Ffceh&awt_m=JDZkG_A21ZdfbL&utm_source=newsletter&utm_campaign=20230411&utm_medium=email. The samples he provides are not perfect, but they may be good enough to fool someone, at least initially.

The Pierce County incident demonstrates that scammers will use the latest technology to give them an edge to take your money or your personal information. The development of AI has alarmed fraud watchers. The potential for scammers to mount a fraud campaign increases the scammer’s capability to fake their identity. Multi-pronged strategies can include voice-cloning, AI generated email, and deepfake videos.

How can you protect yourself from AI enhance scams? AARP makes the following recommendations,

·         Don’t trust your caller ID. Scammers can easily spoof any number. If you receive an unsolicited call from a business, hang up, look up their number, and call the number that you found.

·         Pause before you click. If you receive an email or text, never click on any links unless you verify that they go to the right website. This is phishing, where a scammer sends out emails or texts to download malware onto your computer or phone to collect information about you.

·         Consider choosing a safe word for your family. With a safe or secret word that only members of your family know, if you receive a call from a family member, and you become suspicious that it could be a scammer, you can ask them for the secret word.

·         Contact your family member separately. This is what the mother did in the incident above. She texted her daughter to find out if she was truly in distress.

·         Guard your personal information. Don’t give out your personal information such as your full name, home address, Social Security number, credit card or banking information to strangers who have contacted you out of the blue.

·         Report scams. If you have been contacted by a scammers or have been victimized by a scammer, report it to your local police and to the Federal Trade Commission (FTC) at www.reportfraud.ftc.gov.  

 

 

 

KIRO TV:

https://www.kiro7.com/news/local/20-minutes-hell-pierce-county-family-describes-harrowing-ai-scam-call/ZKBKPLLLB5AFNINGQULBINPN2E/

 

AARP:

https://www.aarp.org/money/scams-fraud/info-2023/ai-chatbots-voice-cloning.html?intcmp=AE-FRDSC-MOR-R2-POS3

 

Federal Trade Commission:

https://consumer.ftc.gov/consumer-alerts/2023/03/scammers-use-ai-enhance-their-family-emergency-schemes

 

 

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