Scammers use artifi cial intelligence to dupe victims

PROTECT YOURSELF FROM SCAMS

There are many legitimate companies that use Artificial Intelligence (AI) to help in daily life. Unfortunately, because AI is a relatively new and developing technology, scammers are also increasingly using these tools to harm and deceive.

AI is a term for technology applications that perform tasks typically associated with human intelligence, such as learning, reasoning, problem-solving, perception, and decision-making.

Scammers may use AI to closely mimic human behavior, such as language use or cultural traits, to add credibility to their scams. It can sometimes be hard to tell what is real and what is not. Some

The use of artifi cial intelligence by scammers and other bad actors makes it even more diffi cult to separate fact from fi ction.

Stock Image common types of AI scams include:

• Imposter Deepfakes:

Scammers use AI to compile images from many databases to create fake photos or videos that look and sound real. These scams may use images of someone you know or a well-known celebrity or public figure to add credibility to their messages. They may also use voice cloning technology to deliver their message in a familiar voice.

• Romance Scams: Similar to deepfakes, they use AI technology to create a “perfect match” fake profile on social media or dating sites. Once you’re hooked, they come asking for money or to invest in an amazing opportunity.

• Grandparent/ Relative: These scams use AI voice cloning software to make false emergency calls claiming that a grandchild, or other relative, is in trouble and needs immediate financial assistance. To avoid these scams, create a password that only your family members know, so you can verify their identity over the phone or by text.

• Finfluencers: Social media influencers who push crypto or their own investments on their feeds may be scammers. They typically have no financial advisor certifications but may provide fake credentials on their profile. They may also use AI to create fake followers on their site to make themselves look more legit.

• Automated Attacks: These scams use AI to develop malware that can bypass antivirus software to steal personal data off your phone or computer, such as login credentials and credit card information. To protect your accounts, experts say to use two-factor authentication and change your passwords monthly, or at least annually.

Recognize the Red Flags

It’s important to know the common red flags of investment scams. These include claims that there are no risks involved, aggressive sales tactics that create a sense of urgency to invest now or miss out, and performance reports that seem way too good to be true. AI technology is getting more advanced every day, making it difficult to identify. Some additional red flags that are unique to AI scams include:

• Fake Investment Sites: Companies or trading platforms that claim to use AI to help make money for investors are often scams, especially if they are pushing crypto assets. In some cases, these companies do not use AI, and the trading activity is fake. Your investments appear to grow online, but when you try to cash out your earnings, the scammers disappear with your money.

• Fake News: Scammers create AI-generated news articles that appear legitimate to back up false claims. It’s based on the theory that if you have repetitive exposure to the same or similar information, you may begin to think it’s true and “buy in” to what is being offered.

• Fake Accounts: Be cautious of any investment opportunity that is promoted on social media. These may be loaded with fake accounts that mask scam and fraud activity. Be especially wary of any offers that pay commissions to investors to recruit new investors. Before investing, always independently research and verify your source.

If you think you have been a victim of an AI scam, or suspect one, submit a complaint online at https://dfpi.ca.gov/submit-acomplaint/ or call 866-275-2677

for assistance.

—State of California Department of Financial Protection & Innovation

Bad actors are using sophisticated technologies like Artificial Intelligence to obtain money and sensitive personal information from their victims.