By Kathryn Pomroy – Kiplinger
The five biggest frauds involve the use of artificial intelligence (AI) to dope consumers and businesses. Here’s what to look for.
AI deep fakes, identity theft and fake charity schemes are among the biggest scams targeting either individuals or businesses in 2024, according to a new report from credit reporting agency Experian.
Deceptive deepfake content, ranging from emails, voice and video and fraudulent websites, is increasing in particular due to generative artificial intelligence (AI). Deepfakes are synthetic media that have been digitally manipulated to replace a person’s likeness with that of another.
More than 65% of Americans say they sometimes come across altered videos and images intended to mislead.
Deepfakes have empowered fraudsters to embrace a “do-it-yourself” approach to fraud and make consumers and businesses more vulnerable to attacks, according to Experian’s 2024 Future of Fraud forecast.
Key findings of the report:
· Nearly 70% of businesses report that losses due to fraud have increased in recent years.
· More than half of all consumers feel they are more of a target of fraud than one year ago.
Experian suggests consumers and businesses be on the alert for these five fraud threats in 2024:
1. AI scams, including deep fakes, stolen identities
Generative AI has resulted in numerous benefits across industries, but it has also made fraud more accessible and put consumers and businesses at risk. Besides escalating deepfake content, fraudsters may also use AI to engineer “proof of life” schemes socially, duping people out of hundreds, if not thousands, of dollars. Using stolen identities, fraudsters can create fake identities online and through social media and interact with these new profiles that look real to the consumer.
2. Weaker fraud protection at in-person banks
Over the years, there’s been a substantial migration to digital banking.