(NC) One of the biggest transformations artificial intelligence (AI) is driving is in the area of fraud. AI lets fraudsters impersonate more easily, personalize their scams and move faster than ever before. According to Mastercard, here are three scams where it’s playing a major role, and ways to keep yourself safe.
The grandparent scam: This is a good example of how fraudsters can use AI to personalize their scams like never before. Fraudsters will target seniors with a phone call when they’re off-guard or vulnerable. Using AI they will alter their voice to sound like. a family member in distress who needs money right away.
Calls like this are meant to play on your emotions, so listen to your instincts. Ask yourself: Why would money be what they need, instead of help in some other way? If you are unsure, call them back using the number you have for them. Also, consider having a “secret word” that only family members know, to help verify identity.
The fake order: This is a type of phishing scam, where fraudsters send a message designed to look like it’s coming from a legitimate source, in order to get sensitive information or login credentials from you. A common version is sending a fake invoice or confirmation for an online order.
Treat any unexpected messages like this with suspicion. Fraudsters often pose as businesses you trust. Never click on links or use any contact information from this type of message. Reach out to the business yourself through the phone number or contact form on the company’s website. They’re victims of the scam, too, and can work with you to get to the truth.
Authorized push payment (APP) fraud: AI tools can let fraudsters ask you for legitimate-seeming fast payments that often go through before your financial institution can react. They usually focus on impersonating quick but necessary payments, such as Canada Revenue Agency back taxes, bank overdraft fees or credit card bills.
Thanks to the speed of AI, all it takes is a moment’s lapse in attention for someone to send what could be an irreversible payment. But, AI is also being used to strengthen fraud prevention. Payment providers, like Mastercard, have developed tools that work in the background while you complete a purchase. These systems are designed detect this type of fraud automatically, in real-time and stop the fraudulent transaction in its tracks.