‘This is only the beginning’: AI technology’s terrifying role in the explosion of online financial scams
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The convenience of online transactions today has become a double-edged sword. While it has made our lives easier, it has also opened Pandora's box of financial scams.
Cybersecurity experts are now raising the alarm about an 'epidemic' of online financial scams fuelled by the rapid advancement of artificial intelligence (AI).
This issue is not confined to any one region; it's a global problem that's reaching uncontrollable levels.
An investigation by the Australian Associated Press FactCheck into cryptocurrency scams targeting the Pacific Islands has shed light on the extent of this issue.
The investigation analysed over 100 Facebook accounts of self-proclaimed crypto traders who were promoting their services to residents of nations such as Papua New Guinea, Fiji, and the Solomon Islands.
The findings were alarming, revealing deceptive methods, including fake profile images, doctored bank notifications, and false claims of affiliation with top financial institutions.
While Pacific Island nations have been targeted due to their lower financial and media literacy levels and ill-equipped law enforcement, this issue is far from isolated.
In 2022 alone, the Australian Competition and Consumer Commission (ACCC) reported that Australians lost more than $3 billion to scams, with $377 million involving fraudulent investment schemes.
Ken Gamble, co-founder of the cybercrime investigation unit IFW Global, warned that AI is making these scams more sophisticated and harder to stop.
'There's a world epidemic of scams,' he said.
'And now that AI is being introduced to the scams, the AI can now expedite the way in which these scams are marketed across social media.'
The result? Scams are being created faster than they can be shut down, making the situation ‘actually uncontrollable’.
Gamble said scammers also use AI to master local languages, allowing them to target 'literally every nation on earth'.
The Pacific Islands are particularly attractive to scammers due to their limited law enforcement capabilities.
'They know that nobody that they scam in those countries is ever going to have a hope in hell of actually recovering their money or investigating,' Gamble said.
Most of these scams originate from organised criminal gangs in Israel, China, and Nigeria. While sophisticated scams target a select number of wealthy individuals in Western nations, fraudsters aim for large numbers of people in the Pacific.
One victim in Papua New Guinea shared her ordeal, explaining how her relative's social media account was hacked, leading her to believe she was discussing an investment with a trusted family member.
In reality, she was speaking directly to the scammer.
'He scammed me big time,' the woman, who asked to remain anonymous, said.
She lost more than 15,000 kina (about $6000 AUD).
Dan Halpin from Cybertrace, a Sydney-based cyberfraud investigations company, emphasised the need for a coordinated global response to tackle this problem.
'This includes not only law enforcement agencies like local police and international bodies like Interpol but also involves raising awareness among the public, strengthening regulatory frameworks, and fostering collaboration between nations,' he said.
Improving cyber literacy levels in the region is also essential, Halpin added.
Gamble echoed this sentiment, warning that unless the issue is treated as a priority, the situation will only worsen, fuelled by advances in AI.
'This is only the beginning of what you're going to see,' he said.
With the surge of AI, it’s crucial to stay informed about the latest scams to protect your hard-earned money.
In a previous story, a consumer group shared the five new scams that anyone could fall victim to this year. You can read more about them here.
You can also read about how scammers have given an old scam a disturbing new twist: impersonating loved ones’ voices.
If you or someone else has been scammed, immediately report it to Scamwatch here. You may also visit our Scam Watch forum to stay updated on the latest scams.
What are your thoughts on this issue, members? Have you or someone you know been targeted by such scams? Let us know in the comments below.
Cybersecurity experts are now raising the alarm about an 'epidemic' of online financial scams fuelled by the rapid advancement of artificial intelligence (AI).
This issue is not confined to any one region; it's a global problem that's reaching uncontrollable levels.
An investigation by the Australian Associated Press FactCheck into cryptocurrency scams targeting the Pacific Islands has shed light on the extent of this issue.
The investigation analysed over 100 Facebook accounts of self-proclaimed crypto traders who were promoting their services to residents of nations such as Papua New Guinea, Fiji, and the Solomon Islands.
There has now been an ‘epidemic’ of online financial scams with the help of AI. Credit: Shutterstock
The findings were alarming, revealing deceptive methods, including fake profile images, doctored bank notifications, and false claims of affiliation with top financial institutions.
While Pacific Island nations have been targeted due to their lower financial and media literacy levels and ill-equipped law enforcement, this issue is far from isolated.
In 2022 alone, the Australian Competition and Consumer Commission (ACCC) reported that Australians lost more than $3 billion to scams, with $377 million involving fraudulent investment schemes.
Ken Gamble, co-founder of the cybercrime investigation unit IFW Global, warned that AI is making these scams more sophisticated and harder to stop.
'There's a world epidemic of scams,' he said.
'And now that AI is being introduced to the scams, the AI can now expedite the way in which these scams are marketed across social media.'
The result? Scams are being created faster than they can be shut down, making the situation ‘actually uncontrollable’.
Gamble said scammers also use AI to master local languages, allowing them to target 'literally every nation on earth'.
The Pacific Islands are particularly attractive to scammers due to their limited law enforcement capabilities.
'They know that nobody that they scam in those countries is ever going to have a hope in hell of actually recovering their money or investigating,' Gamble said.
Most of these scams originate from organised criminal gangs in Israel, China, and Nigeria. While sophisticated scams target a select number of wealthy individuals in Western nations, fraudsters aim for large numbers of people in the Pacific.
One victim in Papua New Guinea shared her ordeal, explaining how her relative's social media account was hacked, leading her to believe she was discussing an investment with a trusted family member.
In reality, she was speaking directly to the scammer.
'He scammed me big time,' the woman, who asked to remain anonymous, said.
She lost more than 15,000 kina (about $6000 AUD).
Scams are created faster than usual, making the situation ‘actually uncontrollable’. Credit: Shutterstock
Dan Halpin from Cybertrace, a Sydney-based cyberfraud investigations company, emphasised the need for a coordinated global response to tackle this problem.
'This includes not only law enforcement agencies like local police and international bodies like Interpol but also involves raising awareness among the public, strengthening regulatory frameworks, and fostering collaboration between nations,' he said.
Improving cyber literacy levels in the region is also essential, Halpin added.
Gamble echoed this sentiment, warning that unless the issue is treated as a priority, the situation will only worsen, fuelled by advances in AI.
'This is only the beginning of what you're going to see,' he said.
With the surge of AI, it’s crucial to stay informed about the latest scams to protect your hard-earned money.
In a previous story, a consumer group shared the five new scams that anyone could fall victim to this year. You can read more about them here.
You can also read about how scammers have given an old scam a disturbing new twist: impersonating loved ones’ voices.
If you or someone else has been scammed, immediately report it to Scamwatch here. You may also visit our Scam Watch forum to stay updated on the latest scams.
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