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Electronic Fraud in the World of AI Thumbnail

Electronic Fraud in the World of AI

I’ve recently had a number of clients who have been targeted by fraudsters.  Unfortunately, these frauds are happening more frequently due to increased use of social media platforms and are getting more sophisticated and compelling with significant recent advances in fraudster experience, resources and AI technology.  In addition, deep fakes of pictures, audio and video create some unique challenges going forward that are cause for concern.  

Here’s some common scams and then some ways to protect yourself and family members:

  1. Money Mules
  2. Romance scams
  3. Imposter scams
  4. Mortgage and Foreclosure scams
  5. Phishing

Money Mule scams:   These scams are generally a “business opportunity” that are presented by criminal enterprises.  These scams are characterized by strangers reaching out to ask you to open bank accounts or access your debit cards or receive and forward packages and or money for them as part of a “business opportunity”.    Beware!  These are illegal activities that they are looking to have someone conduct in their behalf.   These funds are “laundered” money from criminal enterprises and are not legitimate and you could not only lose money but find yourself with legal problems.  

Romance scams:  These scams are characterized by victims being befriended on social media and developing a quick and emotional relationship with someone they have never met.  These are fake identities.  The scammer leverages the “relationship” to ask for money – generally through gift cards, payment apps or cryptocurrencies.  These scams can be elaborate and emotionally compelling and have resulted in billions in losses.  NEVER send money to someone you have never met in person.  

Imposter scams:  While in many ways all scams include some type of imposter these scams are generally an attempt to convince you they are someone with authority.  They typically use caller ID to make their phone calls look legitimate.  Whether it be a call from the someone posing as the IRS, local police, charity, “Microsoft tech support” or a grandchild calling with an emergency financial need – these are very tricky scams.  They will attempt to scare you quickly into providing funds via wired funds or cryptocurrency.   Do NOT fall for it!

Mortgage and Foreclosure scams:  If you are looking to buy a home or refinance a mortgage beware…  Do not work with anyone who says your credit doesn’t matter or that asks you to sign over the deed of your property.  Anyone who asks you to lie about either your income or the value of your home is also not worthy of your trust.  If it’s too good to be true – it is not true.  Only work with reputable mortgage companies that friends or family have worked with – not those who reach out to you via phone or email.   

Phishing scams:  Many of these scams are a combination of scams.   Phishing is receiving an email,  text or phone call from a well-known source asking you to provide personal information such as logins or personal information.  Do NOT click on email links or text links that are unfamiliar because they could be links to install malware on your phone or computer.   Do not provide personal information to anyone who you did not call up personally – even if they say they are from the police or IRS and will take you to prison if you don’t!

How to protect yourself and your family:  

Get off social media or don’t connect to anyone that is not a friend of a friend of a friend.  

Don’t trust anyone with personal information that you have not met in person.

Protect your credit by doing a credit freeze

Pay for password-keeper software instead of making all passwords simple or identical.  

Independently verify a company, website or person who contacts you.  Hang up and call to verify at a phone number you find online for the institution they purport to be from.  

Never share personal financial information with anyone who contacts you unsolicited.  

DO NOT click on unfamiliar links to emails or text messages – EVER.  

Unfortunately, we live in a world where criminals are intent on taking your money.  Anything they can devise to accomplish that goal is on the table.   In the future, this will include increasingly sophisticated tools such as deep fake videos and pictures.   Educate yourself on how to protect yourself and your family from scam artists and use caution as you communicate in person and online.