Frank Takes: 11 Frauds and Scams that will be Supercharged with AI
Frank Takes is a quick summary of insights and findings from the popular industry blog Frank on Fraud, written by renowned fraud expert Frank McKenna, co-founder and Chief Fraud Strategist at Point Predictive.
Artificial Intelligence (AI) is set to enhance existing frauds and scams while also creating unprecedented new ones. Here are eleven scams that AI will supercharge:
1. Deepfake CEO BEC Fraud
Real-time video and audio cloning enable fraudsters to create highly realistic Business Email Compromise (BEC) attacks by deep-faking CEOs and other executives to trick employees into wiring funds.
2. AI-Enabled Extortion Scams
Scammers generate AI-based sexually explicit images or videos of targets to extort money by threatening to release these materials.
3. Perfect Romance Scams
Advanced deepfake video and tools like Xpression Camera allow scammers to execute highly convincing catfishing schemes, deceiving victims into believing they are in genuine relationships.
4. Fraud Vendor AI Attacks
AI bots are trained to carry out “swarm attacks” on retailers, exploiting weaknesses in fraud prevention systems by adapting transaction patterns to bypass controls.
5. AI Automated Credit and Fraud Disputes
AI-driven software enables fraudsters to automate dispute processes, crafting realistic handwritten dispute letters to deceive banks and lenders.
6. AI-Generated Phishing Attacks
Cyber attackers use AI to create personalized phishing emails that evade spam filters, adapting future attacks based on recipient interactions.
7. AI-Generated Document Forgeries
AI can produce near-perfect forgeries of paystubs, bank statements, and identification cards, making it difficult to detect fraudulent documents.
8. Child in Danger Ransom or Bail Voice Cloning Scams
Scammers use AI to clone voices of children or relatives, calling family members to demand ransom or bail money under false pretenses.
9. AI-Generated Malware
AI creates autonomous malware capable of adapting to various environments to evade detection, allowing even non-programmers to construct sophisticated malware.
10. AI Constructed Fake Retailer and Harvesting Sites
Using generative AI, fraudsters build fake online retail sites with convincing products and services to harvest payment card details or conduct triangulation scams.
11. Autonomous AI Scam Bots
AI scam bots engage with victims in human-like conversations, building trust over time until they are ready to extract funds, with human scammers stepping in during the final stages.
Please note that any opinions expressed in this piece are solely those of the individual author and do not necessarily reflect the views or opinions of the company. For the full article, visit Frank on Fraud.
