Artificial intelligence or AI scams have become more sophisticated, putting consumers’ hard-earned cash in danger.
According to a study by savings marketplace Raisin, AI scams have left Brits out of pocket by an eye-watering £1 billion just in the first three months of 2024. And, as a result, almost half of Brits now feel “more at risk of scams”.
Separate data from Santander revealed that only 17% of Brits are confident that they could easily identify a deepfake scam – used in impersonation frauds like romance scams, investment scams and WhatsApp recruitment scams. This isn’t surprising as deepfakes are on the rise. Santander reports that over a third of Brits have already watched a deepfake (whether knowingly or not), as many of these are circulating widely on social media. Even star fund manager Nick Train was impersonated on WhatsApp.
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Kevin Mountford, finance expert and co-founder of Raisin UK, said, “It is crucial to highlight the severity of online fraud and the potential harm it can cause individuals. Falling prey to online fraud can lead to significant financial loss, erode trust in online platforms, and even compromise personal information.
“Therefore, we must remain vigilant, practice safe online habits, and report suspicious activity to relevant authorities. Preventive measures play a vital role in protecting yourself from the dangers of online fraud.”
With AI technology set to become cheaper and increasingly common, knowing how to stay safe from AI-driven scams will be crucial over the coming years. We’ve rounded up some of the most common AI scams to look out for and how to keep yourself and your money safe.
AI scams to watch out for
1. Deepfakes
Deepfakes are a form of artificial intelligence used by scammers to create seemingly legitimate audio and video. Typically, this will involve scammers using large datasets of images, video and audio to replicate the voice and appearance of a famous face. Software is then used to make the ‘person’ say and do things before being posted online.
Chris Ainsley, head of fraud risk management at Santander said: “Generative AI is developing at breakneck speed, and we know it’s ‘when’ rather than ‘if’ we start to see an influx of scams with deepfakes lurking behind them.”
Already, this technology has been used for attempted financial fraud, with Martin Lewis being the victim of one recent attempt at impersonating him.
“Musk’s new project opens up new opportunities for British citizens. No project has ever given such opportunities to residents of the country”, the simulated Lewis says in the fraudulent clip, widely shared on social media. The video attempts to convince the viewer that Lewis endorses a supposed new investment opportunity from Elon Musk - but it is quickly apparent that no such scheme exists and Lewis himself has hit out against the risks such technology poses.
“These people are trying to pervert and destroy my reputation in order to steal money off vulnerable people, and frankly it is disgraceful, and people are going to lose money and people’s mental health are going to be affected,” he told the BBC.
2. ChatGPT phishing
Email phishing is nothing new - scammers have long been sending out emails pretending to be from a genuine source, such as a bank, technology provider or government department. The scammers will often attempt to make you visit a website that could lead to your bank details or other personal information being stolen. But AI has revolutionised how scammers can produce the emails used to lure people in.
ChatGPT, and other generative AI tools, can easily create bodies of text that impersonate the tone and coherence of legitimate messages for free. This means misspellings, clumsy grammar and other tell-tale signs of a fake email are harder to spot. This kind of software is freely available, presenting more opportunities for scammers to do harm.
3. Voice cloning
This is another form of deepfake AI, where scammers replicate the tone and language of an individual - perfect for convincing someone they’re having a genuine phone conversation with that person.
In one noteworthy example, a mother in America received a call appearing to be from her daughter in a state of distress asking for money. It soon transpired that the call was fake, and the daughter’s voice was cloned using AI.
“I never doubted for one second it was her. That’s the freaky part that really got me to my core,” she told local news outlet AZFamily.
A survey by Starling Bank and Mortar Research found that 28% of adults were targeted by AI voice cloning scams in the last 12 months.
Lisa Grahame, chief information security officer at Starling Bank, said, “People regularly post content online, without ever imagining it’s making them more vulnerable to fraudsters. Scammers only need three seconds of audio to clone your voice”.
4. Verification fraud
We’ve all become accustomed to passwords, passkeys and biometrics to access our phones and banking apps. Even when setting up an account for digital banks like Monzo, you have to send a video of yourself saying a certain phrase.
AI can be used to subvert these security checks, says Jeremy Asher, consultant regulatory solicitor at law firm Setfords, representing a “huge risk” for consumers and institutions alike.
“Fake videos and photographs of people who do not exist, yet appear to look like they have authority, are being generated with the use of AI. This ‘evidence’ is then used to pass identity and security checks, which can lead to a whole eruption of danger. Bank accounts can be accessed, transfers can be authorised, even fake assets are being created to secure financial loans,” he says.
5. AI-generated websites
Similar to copycat banking websites, scammers can use AI to create fake websites or listings which look very much like the real thing. In the case of a fake online store on Facebook Marketplace or eBay, consumers can be easily distracted by a sense of urgency – like a limited-time sale price or free delivery. Once you click on the fake links and enter your details, scammers can access and steal your financial information.
How to spot AI scams
What makes many AI scams dangerous is that they are far harder to spot than more conventional scams. Thanks to advances in technology, fake emails appear to be more genuine, while voice cloning and deepfake videos continue to improve.
“Distinguishing a deepfake video from a genuine one can be quite challenging due to the sophistication of the technology used to create them,” says Louise Cockburn, information security awareness and culture manager at the wealth manager Quilter, but that doesn’t mean AI scams are impossible to detect. Here’s a rundown of what to look for:
Pay attention to the face
Faces are notoriously hard for computers to get right, but humans are really good at noticing small issues or inconsistencies. If you’re watching a video you suspect could be a deepfake, look at the face and ask: Does the skin appear to be too smooth or overly wrinkly? Does the person almost appear to get older and younger throughout the clip? Does the facial hair move in line with the jaw? Does the person blink too much or too little? Do the lips match what’s being said?
Spot discrepancies in the environment
Like faces, constructing an environment that matches the lighting conditions is tricky to do digitally. Ask: Are shadows appearing in places where you would expect them to? Is the lighting consistent? Do reflections appear in any glasses? Does the lighting shift as the subject moves?
Use common sense
Many on social media were quick to spot the Martin Lewis deepfake, noting that he does not talk about investments, nor would he use his platform to encourage people to invest their money in a certain way. So, if you watch a video featuring a famous face discussing something they wouldn’t usually talk about, take the clip with a pinch of salt. “If a video seems suspicious or out of character for the person featured, it's always worth further investigation,” Cockburn adds.
AI will make it “much more complicated to spot scams,” says Matthew Berzinski, senior director at identity management firm ForgeRock, necessitating a vigilant approach from consumers.
“Remember, never provide any security information, agree to take any action, or click on a link via a communication originated ‘from your bank’. If you need to take action on your account, either call them directly on their support line or go directly to their website where you can be sure you are speaking directly to them,” he says.
Question yourself
If you’re not sure about a potential scam, ask yourself, is what I am hearing fact or opinion? A big giveaway is AI scams usually lack emotion, so if you’re listening to a voice, listen out for the tone.
Have measures in place for phone calls
To avoid falling victim to an AI scam, particularly if you’re feeling sceptical about a phone call, hang up and call back. If it is a scam, you most likely won’t be able to call back.
What to do if you are a victim of an AI scam
Currently, much of the advice on what to do if you are a victim of a scam is the same, regardless of whether AI had a part to play or not. It’s vital to secure as much of your information as possible and report it to your bank as well as support services like Action Fraud.
If you have received an email that you’re not quite sure about, forward it to the Suspicious Email Reporting Service (SERS): report@phishing.gov.uk.
Likewise, suspicious text messages can be reported for free by forwarding them to 7726. Suspicious calls can also be sent to this number – simply text 7726 with the word ‘call’ followed by the suspicious number.
For more guidance, visit the Action Fraud website.
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