What AI financial fraud really is and five ways to protect yourself

From viral videos that never happened to popular songs that artists never made, the web is full of misleading content created by artificial intelligence (AI). Fake content has never been easier to create, or harder to catch.

Generative AI has emerged as a powerful tool for criminals, enabling the creation of hyper-realistic “deepfakes” for video and voice and even entire websites. By learning all we can about AI scams, taking steps to protect yourself and sharing what you know with others, we can help beat scammers at their own game.

What are some common AI scams?

Before we get into some common AI scams, it’s important to know that if you’re ever not sure about what is happening, stop and call the number of the person or business the caller is claiming to be. If the caller states they are Credit Human, call us at 1-800-688-7228 or step into your local Financial Health Center to confirm. We are always here to help.

As AI fraud scams become more sophisticated, it is increasingly difficult to determine if a request coming from email, text, call or even video is real. These well-crafted social engineering scams are designed to gain access not only to your personal information but also access to your financial accounts.
Here are some tricky AI scams to look out for:

• Voice cloning
  AI can clone a person’s voice to sound like someone you know. Voice cloning is often used in scams where the criminal pretends to be a family member who is in trouble, or a trusted person asking for help.
• Deepfake videos and phone calls
  Generative AI can make convincing videos, photos and audio clips that make it seem like someone said or did something they didn’t.
• Fake profiles and images
  In an AI image scam, fraudsters create fake profiles, impersonate individuals or deceive people into believing in false information. These scams are often used for identity theft or fake media profiles to collect personal information.
• AI generated websites and listings
  Criminals set up online ads promoting high-return investment opportunities or prize giveaways. These ads lead to fake, AI-generated websites that look nearly identical to real ones. Visitors are tricked into revealing sensitive information leading to identity theft or financial fraud.
• Fake banking log ins and falsified bank sites
  Fraudsters know that the best way to break into your online banking is to trick you into giving them your credentials. One way to accomplish this is to create a fake copy of your bank's website, and get you to submit your login information. By capturing your login information, they gain access to your account and take it over.
• Email phishing scam
  AI has taken this type of online scam to the next level. Scammers use AI generated text to create seemingly authentic emails that bypass spam filters. These emails often look like real account notifications or urgent requests from reputable companies.
• Romance scams
  AI romance scams happen when scammers use AI to create photos, voice and video of a person who doesn’t exist (or deepfake a real person). Then scammers set up dating profiles and social media accounts and use AI chatbots to convince people to wire money or gift cards.

The amount of AI scams currently out there can feel scary. Luckily, there are ways to spot fake content and protect yourself and your finances.

How to spot AI fraud

Awareness is the most powerful tool to prevent AI fraud. Learning how to spot a scam starts with trusting your instincts and looking for these warning signs:

• Unusual payment requests
  If anyone asks you to pay them with a wire transfer, cryptocurrency or by purchasing gift cards, it is a scam. Real businesses and government agencies will not ask for payment this way.
• Sense of urgency
  Scammers create a crisis that requires you to act now. They will tell people that their account is at risk of being closed, a loved one is in danger or a once-in-a-lifetime opportunity is about to expire.
• Typos in an email address or URL
  Many scams sent via email and text (also known as “smishing”) try to get you to click on malicious links to fake websites. The link may lead to a look-alike website created to steal your login credentials. Always look for tiny misspellings in the email address or URL. In many browsers, you can hover your mouse over a link to see its true destination before clicking.
• No previous text history
  Some scams try to trick you into thinking you know the person. They may send you a message like “can we talk about it first?” or “did you still want to meet up today?” However, if the message came from an unsaved number or there is no previous text history, it is most likely a scam.
• Calls from a “fulfillment center”
  Scammers are calling people and using the names of popular companies like Apple and Amazon. In some cases, the scammer simply says, “fulfillment center.” They may tell you there is something wrong with your account or that there has been suspicious activity. In either case, it is an AI scam using cloned voices and you should hang up.

Top 5 ways to protect yourself

1. Verify
   AI can create convincing fake voices, videos or images. If someone is asking for personal or financial information, end the conversation and contact the business or person directly. At Credit Human, you can always hang up and call us back. Our employees respect your privacy and comfort and will never object to extra verification steps.
2. Set up a Secret Verification Phrase
   Asking your supposed relative or friend for a verification phrase is a way to outsmart AI. Pick a random phrase like “Sunny Sunday” and share it with your family and friends. Note: never share passwords or phrases on social media.
3. Control Your Digital Footprint
   Scammers can use publicly shared social media to steal photos, personal details about your life and even clips of your voice to make impersonation attempts more convincing. Consider setting all your accounts to private to limit who can see what you post.
4. Set Up Alerts
   Alerts are messages you can receive by email, text or phone notification when certain events happen in your account. You can set up alerts in your Credit Human Digital Banking by following these steps.
5. Slow Down
   AI powered scams are designed to create a sense of urgency. Take a step back and wait before acting.

If you’ve been targeted

If you're a member, contact Credit Human through our contact form or call 1-800-688-7228 to let us know your information has been compromised. Then reach out to your credit card companies to let them know about the fraud.

Next, report fraud to the FTC so they can take appropriate steps in catching the humans behind the AI generated scam. Reporting the scam helps law enforcement and government agencies track criminals and protect others in your community. File a report online with the Federal Trade Commission at ReportFraud.ftc.gov.

You’ll also want to change passwords and consider a credit freeze. If your identity has been stolen, reach out to identitytheft.gov to learn your next steps.

What you can expect from Credit Human

Credit Human’s goal is to ensure a safe and secure experience for our members. Our Fraud Services team continuously analyzes behavioral patterns and transaction data to flag any possible fraudulent activities.

Our legitimate calls will never ask our members for Digital Banking login credentials, one-time passcodes, debit card information, or request or advise that members send money out of their accounts. No matter who the caller says they are, if they are requesting any of these things from you, it’s not from us.

Credit Human is your credit union. Protecting your financial wellbeing is our number one priority. To learn more about how you can protect yourself and your accounts, reach out to a Member Relationship Specialist or visit us in person at a Financial Health Center today.

Before you go: Learn more about how your accounts are safe at Credit Human and how to safeguard your finances on social media.