Today’s rapidly evolving digital landscape is making these scams easier, more lucrative and more sophisticated. They use the most sophisticated artificial intelligence and technology to trick and defraud people and organizations. MetaBlock X knows that it’s important to stay informed and stay active in protecting against these new and emerging threats. Read this article to learn how AI is shaping new scam tactics across sectors. Equally valuable, it gives readers strategies they can use to spot these scams and avoid them.

The Rise of AI-Powered Scams

Just as companies are learning how to use AI, so are fraudsters, creating a new wave of high-tech scams. This insidious new trend is better known as “Scams 2.0.” These scams have increased realism and personalization. Their scalability unfortunately makes these much more difficult to detect than a more typical scam. Catherine Miller is a long time blockchain advocate and practitioner. She further stresses that people and companies need to be aware of these changing dangers and take responsibility to put in strong security standards.

AI enables scammers to use deepfakes to create more convincing scams, personalize phishing attacks, and automate their overall operations. This technological advance allows them to reach a larger swath of potential victims. It also increases the scale of their fraud and allows them to avoid detection at much higher rates. Falling prey to these scams is not just an inconvenience, it can have tragic effects. Without it, you are vulnerable to economic harm, identity theft, loss of reputation, and emotional suffering.

The prevalence of AI-powered scams requires an especially proactive approach to security. The threats we face today have outpaced many of the security practices we relied on. People and businesses need to embrace a defense-in-depth posture that couples technical protections with end-user training and awareness campaigns.

Deepfakes: The Art of Digital Deception

Deepfakes have been the poster children for scams driven by AI. They employ new artificial intelligence techniques to create shockingly realistic, though entirely fabricated, videos and audio files. As with all deepfakes, this technology can be weaponized to impersonate individuals, manipulate events, and spread disinformation. The future uses of deepfakes are unlimited, which even more unfortunately, scammers have been all too eager to exploit in the service of nefarious criminal acts.

Deepfake Techniques and Applications

  • Advanced impersonation: Deepfakes enable fraudsters to impersonate individuals, including CEOs, with a high level of accuracy. This makes it difficult for victims to distinguish between legitimate and fake requests. Imagine receiving a video call from your CEO urgently requesting a wire transfer – a scenario easily orchestrated with deepfake technology.

  • Voice cloning: Deepfakes can be used to clone voices, allowing scammers to make phone calls or create audio recordings that sound like they are from a trusted individual. This technique can be used to trick victims into divulging sensitive information or making unauthorized transactions.

  • Video manipulation: Deepfakes can be used to create manipulated videos that appear to show a person saying or doing something they never did. This can be used to blackmail victims, spread false information, or damage their reputation.

The Impact of Deepfakes on Scams

Credibility and scalability Deepfakes further supercharge the effects of scams, making their projects more convincing and scalable.

  • Increased credibility: Deepfakes can make scams more convincing and credible, as they can be used to create fake online personas or to make it appear as though a trusted individual is involved. This can lower the victim's guard and make them more susceptible to the scam.

  • Scalability: Deepfakes can be used to commit fraud at scale, making it possible for scammers to target multiple victims simultaneously. This is because deepfakes can be easily replicated and distributed through various online channels.

Personalized Phishing: Targeting Individuals with Precision

Phishing scams, which have been used for years to steal your information and money, have gotten even scarier with AI. Personalized phishing, or spear phishing, consists of writing customized emails or messages directed to specific targets. These notifications often have personalized details or context-based cues built in. This lends them an air of legitimacy and increases the likelihood that victims will be duped by the scam.

How AI Enhances Phishing Attacks

AI algorithms combine incredibly fast to process massive amounts of information from social media and open source databases. They are able to gather irreplaceable information about lawfully present victims quickly. Cybercriminals then use this information to learn and create extremely personalized phishing emails. These emails frequently get through security filters, making it more likely that recipients will click on harmful links or provide personal data.

>A bad actor could, for instance, use AI to help find people who have tweeted about wanting to invest in a new cryptocurrency. They could then send personalized phishing emails that appear to be from a legitimate cryptocurrency exchange, offering exclusive investment opportunities. These emails nearly always include the victim’s name and home town. Some even go so far as to publish information about their prior investment activities, which renders them ultra-credible.

Common Phishing Tactics

  • Verify sender information: Be cautious of emails or messages from unfamiliar senders, even if they appear to know your name or other personal details. Scammers often use social engineering techniques to gather information about their victims.
  • Be wary of generic greetings: Legitimate organizations usually address you by your name, so be suspicious of generic greetings such as "Dear Customer" or "Dear User."
  • Check for spelling and grammar mistakes: Phishing emails often contain errors, so look out for these red flags. Legitimate organizations typically have professional editors who proofread their communications.
  • Hover over links to check the URL: Before clicking on a link, hover over it to see the actual URL and verify it's legitimate. Scammers often use shortened URLs or URLs that closely resemble legitimate websites.

Sectors Under Siege: Crypto, Payroll, and Tech Support

These AI-powered scams cut across every industry and sector. They have penetrated industries such as cryptocurrency, payroll, and tech support, causing deadly consequences to individuals and organizations at large.

Cryptocurrency Scams

AI-powered scams in this sector often involve:

  • Fake ICOs (Initial Coin Offerings): Scammers create fake websites and marketing materials to promote fraudulent ICOs, luring investors with promises of high returns.
  • Phishing attacks targeting crypto wallets: Scammers send phishing emails that appear to be from legitimate cryptocurrency exchanges or wallet providers, tricking victims into divulging their private keys or login credentials.
  • Pump-and-dump schemes: Scammers artificially inflate the price of a cryptocurrency and then sell their holdings at a profit, leaving other investors with significant losses.

Payroll Scams

Payroll scams usually consist of criminals pretending to be your employees and asking for their direct deposit information altered. Bad actors are leveraging AI to create much more convincing emails that appear to be from an actual employee. This complicates it even further for payroll departments to detect the fraud.

Tech Support Scams

In tech support scams, fraudsters pretend to be technical support agents. They promise to help with computer or other technical issues, deceiving vulnerable victims. These types of scams typically prey on those who are the least knowledgeable in technology. Today, scammers are using AI to generate realistic fake websites and phone numbers. This creates a confusing environment in which victims are unable to discern legitimate tech support offerings from the scammers.

Actionable Strategies for Protection

Stopping these AI-enabled scams will take a comprehensive approach, blending technological protections with user education and awareness trainings. Here are some actionable strategies that individuals and organizations can implement to protect themselves:

  1. Stay informed: Keep up-to-date on the latest AI-powered scam tactics and trends. MetaBlock X provides regular updates and insights on emerging threats in the digital asset landscape.
  2. Be skeptical: Approach all online interactions with a healthy dose of skepticism. Verify the identity of individuals and organizations before sharing any personal information or making any financial transactions.
  3. Use strong passwords: Create strong, unique passwords for all online accounts and use a password manager to store them securely.
  4. Enable multifactor authentication: Enable two-step verification or multifactor authentication for all accounts to add an extra layer of security.
  5. Install antivirus software: Install reputable antivirus software on all devices and keep it up-to-date.
  6. Be careful what you share online: Limit the amount of personal information you share online, as this information can be used by scammers to target you.
  7. Report suspicious activity: If you suspect that you have been targeted by an AI-powered scam, report it to the appropriate authorities, such as the Federal Trade Commission (FTC) or the Internet Crime Complaint Center (IC3).
    • Federal Trade Commission (FTC): The FTC accepts reports of tech support scams through its website, consumer.ftc.gov, and through its online complaint assistant.
    • Internet Crime Complaint Center (IC3): The IC3, a partnership between the FBI and the National White Collar Crime Center, accepts reports of tech support scams through its website, ic3.gov.
  8. Educate yourself and others: Share your knowledge about AI-powered scams with friends, family, and colleagues. The more people who are aware of these threats, the less likely they are to fall victim to them.

Read up and keep your guard up. By adopting these concrete strategies, you and your team will be much less likely to become prey to AI-powered scams. MetaBlock X is committed to providing the resources and guidance needed to navigate the digital asset landscape with confidence and security.