Delve into the world of AI-driven fraud, where scammers exploit technology to deceive individuals and cause financial losses for businesses. Explore the rising concerns, increased spam and scams, and the alarming surge in account takeover attacks.
If you put out enough bait, something will ultimately pounce. This seems to be the approach fraudsters are taking in 2023 as they take advantage of artificial intelligence (AI) technology. 78% of people are worried about AI scamming them, according to the Q2 2023 Digital Trust & Safety Index published by Sift, a digital trust and safety organization.
AI development has been two-sided. When misused, it can hurt consumers. 68% of US consumers reported an increase in spam and scams after November 2022. Because generative AI technologies are popular with scammers and have entered the consumer market. Unsettlingly, 49% of clients say AI has made fraud detection tougher.
19% of consumers reported being phished. Business email hack techniques have cost firms $43 billion in recent years, according to the survey. AI-generated schemes should caution businesses. especially since these schemes can lead to ATO attempts.
The first quarter of 2023 saw 427 percent more ATO attacks than 2022. Account takeover fraudsters use OTP bots. These bots trick personnel into providing them OTPs for login information. Con artists earn from bots since they contact so many people. since they can pay daily, weekly, monthly, or annually.
However, the problem won’t simply go away with time. Global e-commerce fraud loss is anticipated to climb by 16% YoY by the end of 2023, reaching $48 billion, according to Sift. What’s more worrying is that businesses could lose up to $343 billion by 2027 due to payment fraud if nothing is done.
Who is to blame?
Scammers are also changing. Organizations are searching for new methods to exploit employees as they try to find new ways to stop them. So much so that almost half (49%) of workers think it has gotten harder to recognize frauds over the past six months. More than a fifth (21%) of workers are concerned they wouldn’t be able to recognize an AI-generated scam.
Unfortunately, frauds will continue to target unsuspecting individuals. However, 54% of customers disagree that they should be held accountable if they fall victim to fraud. 30 percent of those surveyed think their bank or financial institution should be in charge of stopping the illegal transaction. In the meanwhile, 24% think it should be the company where the attempted transaction was made.
According to Brittany Allen, trust and safety architect at Sift, “generative AI has already been a boon for fraudsters, despite being in its infancy.” Online frauds will eventually be pervasive and terrifyingly convincing due to the size and accessibility of automated technologies, resulting in immeasurable losses for both consumers and businesses. However, businesses may embrace AI and automation themselves to stop fraud before it starts and lessen friction for legitimate users and simultaneously safeguard their customers and increase income.
