Beware Muggle-Style Fraud: Hermione Granger Reports on the Rise of Generative AI Scams

The Art of Deception

More than one in four companies now ban their employees from using generative AI. But that does little to protect against criminals who use it to trick employees into sharing sensitive information or pay fraudulent invoices. Armed with ChatGPT or its dark web equivalent FraudGPT criminals can easily create realistic videos of profit and loss statements fake IDs false identities or even convincing deepfakes of a company executive using their voice and image. The statistics are sobering.

Phishing: Not Just for Mermaids Anymore

In a recent survey the Association of Financial Professionals found that 65% of respondents said their organizations had been victims of attempted or actual payments fraud in 2022. Of those who lost money 71% were compromised through email. Larger organizations with annual revenue of $1 billion were the most susceptible to email scams according to the survey. Among the most common email scams are phishing emails which resemble a trusted source but lead victims to fake websites where personal information is stolen.

Spear Phishing: When Spells Go Awry

Spear phishing takes phishing to a whole new level. These targeted attacks use personal information about individuals or organizations to make fraudulent emails seem more legitimate. Criminals may even deepfake the CEO or other high ranking executives to further deceive employees. As Hermione would say it's like casting a Confundus Charm on unsuspecting victims.

When Reality and Illusion Blur

Generative AI technology has made it harder than ever to discern what's real and what's not. Gone are the days of wonky fonts and grammar mistakes giving away a scam email. Now criminals can use ChatGPT or FraudGPT to create convincing spear phishing emails that fool even the most discerning wizard or witch.

Celebrities Deepfakes and Fake Investments: Welcome to the Show

Recent high profile deepfakes involving public figures like Elon Musk Gayle King Tucker Carlson and Bill Maher have shown how quickly this technology has evolved. These videos circulate on social platforms like TikTok Facebook and YouTube leading unsuspecting Muggles into the clutches of financial fraudsters.

The Battle for Financial Security

As the use of generative AI grows the financial industry faces an uphill battle in combating fraud. The rise of payment solutions and APIs has expanded the field of attack for criminals. Large companies with billions in revenue are prime targets and the numbers game is paying off for fraudsters. But fear not brave wizards and witches for the financial industry is fighting back with its own generative AI models.