From enhanced business productivity to improved healthcare and access to education, artificial intelligence (AI) has the potential to positively impact many aspects of our lives. However, the sudden rise of AI has also given way to new challenges, opening the door to sophisticated forms of financial scams. The first step towards keeping our finances safe is understanding the ways in which AI is being exploited.

How AI is being used in financial scams

Technology has revolutionised the way we conduct our financial transactions and, while technological advancement brings numerous benefits, it also highlights an alarming trend. As AI continues to evolve, it’s increasingly being used by cyber-criminals to devise convincing and targeted scams that pose a significant threat to financial security.

Some of the ways in which AI is being deployed in financial scams include:

• Sophisticated phishing attacks: AI-powered algorithms have been designed by cyber-criminals to analyse individuals’ online behaviour, social media activity, and personal preferences and to craft highly convincing phishing emails. These emails may appear to come from trusted sources but are being used to lure unsuspecting recipients into sharing sensitive information or clicking on malicious links.
• Voice cloning: AI can replicate human voices with astounding accuracy, and scammers are using this technology to impersonate individuals, especially authoritative figures like CEOs or government officials, to request urgent financial transactions.
• Investment scams: By analysing market trends and predicting potential investment opportunities, scammers are exploiting AI by presenting fake investment opportunities backed by AI-generated data to entice unsuspecting investors into investing in fraudulent schemes.
• Fraudulent chatbots: AI-powered chatbots that simulate conversations with individuals, make it difficult to distinguish between genuine interactions and fraudulent ones. Scammers use these chatbots to gather personal information or convince victims to transfer money.

What to do to keep your finances safe

Don’t wait to be a target of an AI scam, but instead, employ these measures to protect yourself from falling victim:

• Educate yourself: Stay informed about the latest AI-driven scams, and understand the tactics that scammers use and the red flags to watch out for. Regularly review scam alerts and resources from trusted sources, such as government websites, financial institutions, and cybersecurity organisations.
• Verify requests: If you receive an urgent request for financial assistance or sensitive information, take extra precautions. Verify the request through a separate communication channel, such as calling the individual directly, to ensure the communication is legitimate.
• Improve your digital security: Regularly update your passwords and use strong, unique passwords for each online account. Enable multi-factor authentication (MFA) wherever possible to add an extra layer of security.
• Be wary of unsolicited communications: If you haven’t signed up for an email, message or call, treat any unsolicited communication as suspicious, even if they seem to come from trusted sources. Avoid clicking on links or downloading attachments from unknown senders.
• Install security software: Use reputable antivirus and anti-malware software to protect your devices from potential threats. Keep your operating system and applications up to date, and regularly update your security software.
• Limit online sharing: Be mindful of the information you share on social media and other online platforms. Scammers can gather personal details to craft convincing scams tailored to your interests and connections.
• Report suspicious activity: If you come across a potential AI-driven scam, report it to the relevant authorities, such as the Australian Competition and Consumer Commission (ACCC) or the Australian Cyber Security Centre (ACSC).

Recognising a financial scam

Could you be a target of AI fraud? These red flags may be your first clue that you’re being targeted by an AI scam:

• Multiple unsolicited emails or text messages.
• Being asked to provide personal information or login credentials by an unverified contact.
• Unusual or unexplained activity on your social media accounts.
• Receiving financial advice that seems too good to be true.

Be cautious and always investigate further if you notice any of these signs. It pays to be cautious when it comes to your personal information and finances. As AI continues to reshape the financial landscape, we all need to remain vigilant against the growing threat of AI-driven financial scams.

Stay informed, adopt best practices for online security, and exercise caution in all online interactions, to better protect yourself from falling victim to these increasingly sophisticated AI-driven scams.

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Australian Financial Complaints Authority (AFCA) | Member of Choice Aggregation Services.

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• Source: https://www.mortgage-express.com.au/blog/protect-finances-ai-scams