Experts are being fooled by new AI scams! Learn how to protect yourself from this rising threat
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In an age where technology is advancing at an unprecedented pace, the line between reality and artificial intelligence (AI) is becoming increasingly blurred. This technological leap has brought about many benefits, but it has also opened the door to sophisticated scams that are fooling even the most astute experts. At the Seniors Discount Club, we believe it's crucial to stay informed and vigilant, especially when it comes to protecting your hard-earned savings from these emerging threats.
Leon, a pseudonym for a seasoned fraud and data analyst with a background in financial institutions, recently encountered a scam so elaborate that it had him second-guessing. He received a cold call from an individual claiming to be from a marketing agency named Assent Advisory, promoting an investment opportunity. Despite his expertise, Leon was nearly convinced by the scam, which utilized AI to create highly detailed and convincing websites for non-existent businesses.
The websites boasted business registration numbers, comprehensive blog posts, profiles of board members complete with photos and academic credentials, and even extensive company policy documents. The level of detail was such that Leon, a professional sceptic, admitted he would have been fooled if a trusted source had referred the website. This incident highlights a worrying trend: AI is changing the nature of scams, making them more convincing and harder to detect.
Associate Professor Lennon Chang from Deakin University, an expert in cyber risk and policy, has noted that AI is making it easier for criminals to produce scams that are difficult to distinguish from legitimate businesses. AI can now be used to create websites, write company policies, generate images, and even produce fake financial reports. This makes it challenging for the general public to verify the authenticity of what they see online.
When it comes to fact-checking an AI-generated scam, the task is daunting. The ABC's investigation into the websites involved in Leon's case revealed several red flags. Images of senior managers at the purported companies had telltale signs of AI generation, such as missing body parts and an unnatural smoothness of skin. Universities listed on the profiles had no record of the individuals, and the locations of supposed mining sites did not exist according to government records.
Even business registrations, which can lend a sense of legitimacy, may be misleading. While the scam website had an active business registration number, it lacked the necessary financial service license, a critical detail that investment expert Associate Professor Rakesh Gupta from Charles Darwin University pointed out.
The rise of AI scams is a serious concern, with Australians losing $945 million to investment scams last year alone. To protect yourself, it's essential to practice 'healthy cynicism' and be wary of red flags such as cold calls, offers that seem too good to be true, and claims of insider knowledge. Always consult with a registered financial advisor before making investment decisions.
If you suspect a scam has targeted you, report it immediately and contact your bank. Additionally, there's a growing need for mental health support for scam victims, including counselling and support groups.
Have you or someone you know encountered a scam that used AI? Share your experiences in the comments below.
Leon, a pseudonym for a seasoned fraud and data analyst with a background in financial institutions, recently encountered a scam so elaborate that it had him second-guessing. He received a cold call from an individual claiming to be from a marketing agency named Assent Advisory, promoting an investment opportunity. Despite his expertise, Leon was nearly convinced by the scam, which utilized AI to create highly detailed and convincing websites for non-existent businesses.
AI is being used to create fake company websites so convincing that even fraud analysts are being misled. Credit: Depositphotos
The websites boasted business registration numbers, comprehensive blog posts, profiles of board members complete with photos and academic credentials, and even extensive company policy documents. The level of detail was such that Leon, a professional sceptic, admitted he would have been fooled if a trusted source had referred the website. This incident highlights a worrying trend: AI is changing the nature of scams, making them more convincing and harder to detect.
Associate Professor Lennon Chang from Deakin University, an expert in cyber risk and policy, has noted that AI is making it easier for criminals to produce scams that are difficult to distinguish from legitimate businesses. AI can now be used to create websites, write company policies, generate images, and even produce fake financial reports. This makes it challenging for the general public to verify the authenticity of what they see online.
When it comes to fact-checking an AI-generated scam, the task is daunting. The ABC's investigation into the websites involved in Leon's case revealed several red flags. Images of senior managers at the purported companies had telltale signs of AI generation, such as missing body parts and an unnatural smoothness of skin. Universities listed on the profiles had no record of the individuals, and the locations of supposed mining sites did not exist according to government records.
Even business registrations, which can lend a sense of legitimacy, may be misleading. While the scam website had an active business registration number, it lacked the necessary financial service license, a critical detail that investment expert Associate Professor Rakesh Gupta from Charles Darwin University pointed out.
The rise of AI scams is a serious concern, with Australians losing $945 million to investment scams last year alone. To protect yourself, it's essential to practice 'healthy cynicism' and be wary of red flags such as cold calls, offers that seem too good to be true, and claims of insider knowledge. Always consult with a registered financial advisor before making investment decisions.
If you suspect a scam has targeted you, report it immediately and contact your bank. Additionally, there's a growing need for mental health support for scam victims, including counselling and support groups.
