10 AI Scams you should watch out for: stay smart, stay safe

Artificial Intelligence (AI) is reshaping how we live, work, and connect. From self-driving cars to chatbots that assist us with customer service, AI’s reach seems limitless. But as AI technologies advance, so do the schemes of cybercriminals. In 2022 alone, Americans lost $39.5 billion to scam calls, many of which used AI to sound more human-like and bypass traditional filters. Even more alarming, voice cloning scams have become so realistic that scammers tricked a CEO into transferring $243,000, believing he was following the instructions of his boss.

Phishing scams have also taken on a new life, with AI-generated emails achieving a 60% higher response rate than traditional phishing attempts. Meanwhile, deepfake technology has created a surge in extortion cases, prompting the FBI to issue warnings about the rising threat. With synthetic identity fraud costing U.S. financial institutions an estimated $6 billion in 2022, it’s clear that AI scams are not only becoming more common but also more costly.

1. AI Voice Cloning Scams

How AI Voice Cloning Scams Work: AI voice cloning scams have made leaps in recent years, with algorithms capable of replicating anyone’s voice from just a few audio samples. Scammers use these AI tools to clone the voice of someone you trust—like a family member, friend, or boss—and call you with urgent requests for money. For example, you might receive a frantic call from your “daughter” asking for money because she’s stranded or in trouble. The voice sounds just like her, but it’s a scammer using cloned audio.

Example of AI Voice Cloning Scam: Imagine receiving a call that sounds like your son saying, “Hey Mom, I’m in trouble. Can you wire me $2,000? I’ll explain later.” It’s enough to panic any parent, but that’s precisely the point. These scammers prey on urgency and emotion.

How to Avoid It:

• Always verify through another method: If you get such a call, text the person or call them back using a number you know is correct.
• Establish a family code word: Create a word or phrase only known to close family members for such emergencies.
• Stay skeptical: Be cautious about sharing recordings or voice notes on social media that scammers could use for cloning.

2. AI Phishing Emails

How AI Phishing Scams Work: Phishing scams aren’t new, but AI phishing scams are more dangerous than ever. Traditionally, phishing emails were easy to spot due to poor grammar and generic language. Today, AI algorithms analyze your online behavior, including your interests and recent activities, to craft emails that feel personal and relevant. These emails might reference your latest Amazon purchase or appear as a follow-up to an event you attended.

Example of AI Phishing Scams: You receive an email that seems to come from your bank, mentioning a transaction you made last week. It instructs you to click a link to verify the details. The email looks legitimate, right down to the bank’s logo and tone. But that link is a trap, designed to steal your login credentials.

How to Avoid AI Phishing Scams:

• Check sender addresses carefully: Often, the email address will have small typos or a suspicious domain.
• Hover over links: Before clicking, hover over any links to see the actual URL. If it looks strange, don’t click.
• Use security tools: Use anti-phishing software and browser extensions that warn you about suspicious websites.

3. Deep fake Extortion

How Deep fake AI Scams Work: Deep fake technology can generate highly realistic videos or images, making it look like a person is saying or doing something they never did. Scammers use deep fakes to create compromising videos, targeting individuals for extortion. They threaten to release these fake videos unless a ransom is paid, leveraging shame and fear to force compliance.

Example of Deep fake Extortion Scam: A scammer sends you a video that seems to show you in a compromising situation, even though you know you’ve never been involved in anything like that. The threat to share it with your family or employer is meant to pressure you into paying quickly.

How to Avoid Deep fake Extortion:

• Report to authorities immediately: Law enforcement agencies are increasingly aware of deepfake extortion tactics.
• Limit what you share online: The more images and videos of you available online, the easier it is for scammers to create a convincing deepfake.
• Stay informed about detection tools: New apps can help spot the subtle inconsistencies in deepfake videos, making it easier to prove they’re fake.

4. AI Stock Trading Scams

How AI Stock Trading Scams Work: AI stock trading scams claim to use advanced algorithms to maximize investment returns. They often show fake testimonials, flashy dashboards, and inflated success stories to lure in investors. However, many of these platforms are Ponzi schemes where returns for early investors are paid using the funds of newer investors. When the scam inevitably collapses, victims are left with nothing.

Example of AI Trading Fraud: You come across a platform promising 15% monthly returns on your crypto investments, with a friendly AI chatbot guiding you through the setup process. It all seems legitimate until the money disappears, and so does the platform.

How to Avoid AI-Based Trading Scams:

• Research thoroughly: Look for reviews on independent forums, and check if the company is registered with financial regulators.
• Beware of guaranteed returns: The stock market is unpredictable; any claim of guaranteed returns is a red flag.
• Start small: If you decide to test a new platform, start with a small amount that you can afford to lose.

5. Romance Scams Enhanced by AI

How Romance AI Scams Work: Online romance scams are nothing new, but AI-enhanced romance scams have made them more convincing. Scammers use AI chatbots to maintain long conversations, creating the illusion of a genuine connection. These bots are capable of mimicking human emotions, responding to your messages with warmth, humor, and empathy. Once trust is established, the scammer shifts to discussing financial troubles and asks for your help.

Example of AI Romance Scam: After weeks of chatting with someone you met on a dating site, they share a story of being stuck abroad without access to their bank account and ask if you can wire them money. They may even send deep fake photos of themselves to make their story seem more credible.

How to Avoid AI Romance Scams:

• Reverse-search images: Use online tools to check if their photos are being used elsewhere on the internet.
• Video call before sending money: If they refuse to video chat, it’s a red flag.
• Trust your instincts: If their story feels too scripted or they always have an excuse for why they can’t meet in person, be wary.

6. AI Content Farms and Fake Reviews

How AI-Generated Fake Reviews Work: AI-generated fake reviews have become a common tool for manipulating product reputations online. These AI-driven review farms can churn out hundreds or thousands of positive or negative reviews, misleading potential buyers. Fake reviews often boost scammy products or damage the reputation of competitors, making it challenging for consumers to make informed decisions.

Example of AI Review Scams: You find a product on an e-commerce platform with glowing reviews, but after purchasing it, you discover it’s a low-quality knockoff. The positive reviews were all AI-generated, designed to manipulate the product’s rating.

How to Spot and Avoid AI-Generated Reviews:

• Look for suspicious patterns: Genuine reviews tend to vary in tone and detail. A flood of overly positive or repetitive reviews is a red flag.
• Check reviews on multiple sites: Compare reviews across different platforms to get a more accurate picture.
• Read the negative reviews: These often contain more authentic feedback and can help you spot potential issues.

7. Synthetic Identity Fraud

How AI-Based Synthetic Identity Fraud Works: Synthetic identity fraud involves using AI to create entirely new identities by blending real and fake information. Scammers use these synthetic identities to apply for credit cards, loans, or even government benefits. It’s like identity theft, but no single individual is directly targeted, making it more challenging to detect.

Example of Synthetic Identity Scams: A scammer uses synthetic identities to open multiple accounts at various banks, taking out loans they never intend to repay. Banks only realize something is wrong when the scammer vanishes, leaving them with significant losses.

How to Avoid Synthetic Identity Fraud:

• Monitor your credit report regularly: Any accounts or inquiries you don’t recognize could be a sign of synthetic fraud.
• Set up fraud alerts: Many banks offer notifications for new credit applications or unusual activities.
• Use two-factor authentication: This adds a layer of security that synthetic identities can’t easily bypass.

8. AI-Generated Scam Calls

How AI Scam Calls Work: AI has supercharged robocalls, making them sound more human-like and convincing. These AI scam calls can imitate voices and hold conversations, making them difficult to distinguish from legitimate calls. Commonly, these calls pretend to be from your bank, a government agency, or a utility company, urging you to provide sensitive information or make a payment.

Example of AI Scam Calls: You receive a call from a robotic-sounding voice that claims to be the IRS, threatening legal action unless you pay overdue taxes. The message sounds official and uses AI to respond to basic questions.

How to Avoid AI Scam Calls:

• Hang up immediately: Official agencies won’t threaten you with arrest over the phone.
• Verify by calling back: Use the organization’s official contact number found on their website.
• Use call-blocking apps: These apps can screen potential scam numbers before they reach you.

9. Fake AI Job Scams

How Fake AI Job Scams Work: Scammers take advantage of the popularity of AI careers by offering jobs that require candidates to pay for training or software. They promise high-paying remote work but disappear once you’ve paid.

Example of AI Job Scams: A job listing offers an opportunity to work with a cutting-edge AI company, but they ask you to pay a “training fee” or buy proprietary software before you can start.

How to Avoid AI Job Scams:

• Research the company: Look for detailed information about the company online, including reviews and a professional website.
• Never pay upfront fees: Legitimate employers won’t ask you to pay to start working.
• Ask for a contract: Scammers often avoid putting details in writing.

10. AI-Driven Ponzi Schemes

How AI-Driven Ponzi Schemes Work: These scams promise consistent returns using AI-based trading algorithms, especially in volatile markets like cryptocurrency. Early investors might see small returns, but the scam is funded by recruiting new investors. Eventually, the scheme collapses, and the money disappears.

Example of AI Ponzi Schemes: A platform claims its AI can generate 20% returns monthly on Bitcoin investments. You invest, and for the first few months, everything seems fine—until one day, the site shuts down, taking your funds with it.

How to Avoid AI-Based Investment Scams:

• Check for licenses and regulations: Make sure the company is registered with financial regulators.
• Diversify investments: Avoid putting all your money in one place, especially in high-risk, unregulated platforms.
• Get professional advice: Consult with a certified financial advisor before making large investments.

Why Understanding AI Scams Matters

Awareness is your best defense against AI scams. By understanding how these AI-based scams work, you can better protect yourself and your loved ones. With AI continuing to evolve, scammers will only get more creative, making it essential to stay updated and vigilant. Remember, a little caution goes a long way in staying safe in today’s digital world. Don’t let these tech-savvy scammers outsmart you—arm yourself with knowledge and skepticism to navigate safely through the world of AI scams.