As we all know, AI offers great advantages to make everything easier and quicker. However, if AI’s power falls into the wrong hands, it can lead to danger. Scammers have already begun using AI to create increasingly sophisticated fraud schemes. This type of fraud is known as AI generated fraud, where scams become more realistic and harder to distinguish.
AI generated fraud is expanding quickly and puts financial companies at risk. It is even estimated that AI-generated fraud could lead to financial losses of up to USD 40 billion by 2027, highlighting how serious the threat is.
What Makes AI Generated Fraud More Sophisticated Than Others?
AI has the capability to produce new content in a highly realistic way. This is why AI-generated fraud can appear much more authentic than those made by hand. Moreover, AI tools are now readily available with a quick search online. With these tools AI-generated fraud can be created on a large scale in just a short time. Unlike traditional fraud that relies on manual effort and is limited, AI can quickly and accurately recreate legitimate documents.
Watch Out For These Most Emerging AI Generated Fraud
Fraudsters are getting smarter with AI, making their tricks more convincing to pass screening. With AI, they can easily edit, manipulate, or replicate things. We’re now seeing more high-level fraud coming up. The most cases found involve deepfakes, phishing, synthetic identities, and fake documents, which all come with risks that can lead to major financial damage.
- Deepfake
Have you ever seen a video where someone’s face is swapped with a celebrity’s? That is one example of deepfake technology. Scammers use this to create fake persona and carry out their fraudulent activities.
- Email phishing
This type of fraud leverages AI to craft messages that look like they are from real people or institutions. These emails use logos, formatting, and language that appear authentic to trick recipients into sharing sensitive information.
By combining real and fake information, fraudsters fabricate new identities that are hard to trace. This usually begins with stolen identification numbers and merging it with unrelated photos or addresses.
- Fake documents
AI can replicate documents into editable templates. Fraudsters take advantage of this feature to forge documents with false information and imitate the layout and style of official ones.
How to Stay Protected Amid the Threat
Strengthening business protection is important, especially with how quickly fraud is changing today. Gain a clearer understanding of the various fraud types currently spreading and start learning their distinctive signs. And the most important, take strategic action by integrating AI fraud detection to enhance your security measures and protect your business against evolving threats.
In our latest eBook, explore the deeper impact of Generative AI on the fraud landscape. We have compiled expert insights to curate a list of warning signs of AI generated fraud, along with practical steps to automatically combat them. Get our ebook for free and discover valuable tips to supercharge your fraud prevention strategy.
