AI in the Hands of Scammers: Protecting Your Business in a Digital Age

In an age where technology is rapidly advancing, the very tools designed to make our lives easier can sometimes be weaponized against us. American consumers reported to the Federal Trade Commission that they lost a record $8.8 billion to scammers last year - and that's not counting the stolen sums that went unreported. Enter the world of AI-powered scams, a menacing dark side of the tech spectrum where malicious actors use sophisticated techniques to dupe unsuspecting individuals and companies. But how real is this threat, and what can businesses do to safeguard themselves?

The Evolution of Digital Deception

Previously, it was common for fraudsters to send deceptive invoices, hoping to trick companies into paying for non-existent services. Today, this deception has evolved. With easily accessible AI tools, scammers can now replicate the voice of an executive, authorizing fake transactions or extracting sensitive information over a phone call. This method, known as "vishing" or "voice phishing," has caught many off guard, with even experts. Moreover, as tech security firms advance their measures, so do the criminals. For instance, to verify users' identities, many fraud prevention companies ask for a “liveness check”, a real-time selfie or video of the individual to match against provided ID documents. However, savvy criminals have found a workaround. Using images from the dark web, they employ video-morphing tools to overlay a genuine face on their own, tricking the system with a 'live' face that isn't theirs. This upsurge in such sophisticated scams, especially in the fintech and crypto sectors, is alarming.

Scammers vs. Protectors and The OpenAI & Llama 2 Concern

The challenges are undeniable. Traditional financial institutions and newer digital platforms alike have been affected, with some experiencing setbacks in their fraud-prevention metrics.

The culprits? Not just isolated hackers, but sometimes organized rings of criminals with layered structures, and at times, their own team of data scientists. These scammers employ a mix of old-school tricks and AI-powered techniques, enhancing their efficiency and believability.

Open-source platforms, while a windfall for many tech developers, pose a unique threat. ChatGPT by OpenAI, for example, can easily be manipulated for ill purposes, despite the organization's measures to prevent misuse. Llama 2 by Meta takes it a step further. Being entirely open-source means anyone can access, modify, and utilize its code, providing a broader arsenal for potential bad actors.

Beating AI with AI

The digital battleground is clear: as scammers leverage AI to outwit security, companies need to employ even more advanced AI to catch them. By studying unique features like typing patterns and phone handling, experts believe intrinsic AI will be the key to halting AI-powered scams.

Protecting Your Business

Here are eight critical steps to ensure your business remains safeguarded against potential pitfalls:

1. Fortify Accounts: Enable multi-factor authentication on all financial accounts.
2. Maintain Privacy: Limit sharing personal or company details on public platforms.
3. Screen Calls: Always verify unfamiliar numbers before answering.
4. Implement Passcodes: Use passcodes for transactions and set up unique passphrases for identity verification.
5. Stay Alert: If something feels off, trust your instincts and probe further.
6. Collaborate with Experts: Partnering with experts, such as Cedar Rose, who specialize in identity verification, can offer an extra layer of protection.
7. Conduct KYB Verification: During the onboarding of a company, conduct a KYB (Know Your Business) verification with Cedar Rose.
8. Request a Due Diligence Investigation: If there's any doubt about the information provided, request a due diligence investigation with Cedar Rose to confirm all details.

In conclusion, while AI-powered scams present a real and evolving challenge, being informed and proactive, coupled with partnering with experts like Cedar Rose, can ensure businesses remain several steps ahead of potential threats. With expertise in identity verification, due diligence, and credit reporting, Cedar Rose combines traditional vetting methods with advanced AI tools, ensuring a double layer of protection against potential fraudsters.

Sources:

https://www.forbes.com/sites/jeffkauflin/2023/09/18/how-ai-is-supercharging-financial-fraudand-making-it-harder-to-spot/?sh=5c6617bf6073&utm_medium=social&utm_source=ForbesMainLinkedIn&utm_campaign=socialflowForbesMainLI

https://www.moneywiseglobal.com/article/how-ai-is-supercharging-financial-scams/