The 6 Most Popular AI Scams In 2024

This year, "AI" has become the go-to buzzword, slung around by nearly every tech company. Originally coined by John McCarthy back in 1956, a pioneer often dubbed the father of AI, this concept isn't exactly new. Fast-forward nearly 70 years, and we've got generative AI tools like ChatGPT, Gemini, and Microsoft Copilot that let just about anyone wield some seriously hefty tech—at little to no cost.

Scammers aren't missing out on this tech boom, either. They're using these advancements to cook up deceptions that are both harder to spot and easier to scale.

Before we dive into 2024's top 6 AI scams, let me show you how easy it is to turn a simple voicemail scam into a highly deceptive AI-powered message using free AI tools.

Live Demonstration: Enhancing A Callback Scam With AI

We'll transcribe the original call, spruce it up with ChatGPT, giving it realistic conversational flair, then run it through PlayHT, an AI-powered text-to-voice tool, and see what comes out the other end.

1. The Orginal Scam Call

Here is an example of a real scam message. It uses a generic greeting, provides no specific details, and creates urgency by threatening vague consequences. This message has scam written all over it.

2. Humanize The Script With ChatGPT

Using ChatGPT, we can enhance the message in seconds. Let's ask it to improve this scam call by adding conversational flair and depth.

3. Run It Through An AI-powered Text-To-Voice Tool

The final step is to use an AI-powered text-to-speech tool, and this is where the magic really happens! Modern text-to-speech tools are leagues ahead of their primitive predecessors, utilizing deep learning algorithms to better mimic human speech patterns, intonation, and emotion. This makes it hard for someone, especially over a phone line, to distinguish between a real meessage and a fake one.

4. The Result

In just a few minutes, we've transformed an easy-to-spot callback scam message into a highly believable, difficult-to-spot scam message that could fool anyone not on their A-game. Listen to the result!

As you can hear, this AI-powered scam call is light-years ahead of the original. It sounds eerily real, and what's truly alarming is that all this was achieved in just a few minutes, using free AI tools. Now that we've seen firsthand how scammers can use AI, let's dive into the five most popular AI scams of 2024.

1. AI-Powered Romance Scams

How It Works

Dating and romance scams have become more sophisticated and scalable with the aid of AI. Fraudsters use generative AI to manage multiple conversations simultaneously, allowing them to easily maintain the illusion of genuine interest and emotional connection.

This technology enables scammers to craft personalized messages, communicate across language barriers, and keep the victim engaged over an extended period. Additionally, scammers now have access to AI-powered face-swapping technology, which allows them to assume any identity on live video calls.

Scam Objective

The primary objective of AI-powered romance scams is to exploit individuals emotionally and financially. By establishing a deep emotional connection, scammers gain the trust of their victims, which they then leverage to request money, sensitive information, or even to commit financial fraud on their behalf.

Case Study: 'Pig Butchering' Scams

The term "pig butchering scam" is derived from the metaphor of fattening up a pig before slaughtering it. Scammers will slowly build trust through affectionate and attentive interactions. Over time, the conversation naturally shifts towards financial advice or investment opportunities, leading victims to invest large sums into fraudulent schemes. This methodical approach ensures that victims are deeply invested emotionally and financially before the grand scam takes place.

For more details on this scam, check out this ABC News article, which features an in-depth look at how "South-East Asia's pig butchering scammers are using artificial intelligence technology." The article also includes a video showcasing live face-swapping technology in action!

2. Deepfake Scams

How It Works

By using sophisticated AI, scammers are not just mimicking voices but also creating convincing video impersonations. Deepfakes use machine learning algorithms to create lifelike representations of people.

Imagine seeing a video of a celebrity or even a loved one asking you directly for help or money; that's the power of deepfake. Advances in deepfake AI technology are making it incredibly challenging for individuals to distinguish real requests from fraudulent ones, as the audio and visual cues that once hinted at forgery are becoming less obvious.

Scam Objective

The primary objective of deepfake scams is to deceive and manipulate individuals into taking actions that benefit the scammers. This can include transferring money, providing sensitive information, or committing other forms of fraud.

Case Study: Hong Kong Clerk Defrauded of $25 Million

In a notable case, a finance clerk at a Hong Kong branch of a multinational corporation fell victim to a deepfake scam, resulting in a loss of over $25 million. Scammers used publicly available videos and audio to train the AI to impersonate multiple senior executives in a video call, convincing the clerk to authorize large funds transfers.

For more details on this scam, read the full article on IT Brew.

3. AI-Powered Social Media Bots

How It Works

The integration of AI into social media bots has transformed them from simple automated scripts to sophisticated tools capable of executing multi-lay red scams with alarming efficiency. These bots can create and manage profiles that look incredibly real, complete with personal details and activity that mimic genuine users.

Advanced AI allows these bots to chat with you, comment on your posts, and even slide into your DMs in ways that make you think you're interacting with a real person.

By analyzing trending topics and user behavior, AI bots can generate and spread fake news articles, misleading posts, and even altered images that look completely legitimate.

Scam Objectives

The primary objectives of these AI-powered social media bots in scams are to exploit user trust and behavior for financial gain, personal data, or manipulation of public opinion.

Additional Resources

In the article titled "How Misinformation and Disinformation Spread, the Role of AI, and How We Can Guard Against Them," Kelly M. Greenhill, an associate professor of political science, dives into how social media amplifies the spread of misinformation driven by AI advancements and sophisticated algorithms.

4. AI-Generated Phishing Emails

How It Works

Gone are the days of phishing emails impaired by poor grammar and obvious red flags. AI is now helping scammers by streamlining the creation of astonishingly realistic phishing emails.

This is achieved through natural language processing, which fine-tunes the tone to be highly convincing. With the help of AI, scammers are now able to create emails that appear legitimate and trustworthy, making it more likely that recipients will open them and engage with their content.

Scam Objective

Phishing emails try to trick you into doing something that benefits the scammer and harms you. This often involves leading you to a fraudulent website that looks legitimate but steals your personal information, tricking you into downloading an attachment that installs harmful software on your computer, or convincing you to respond with sensitive information like passwords or bank details.

View Phishing Emails

If you're curious to see what phishing emails look like, CanIPhish has an extensive collection ready for you to explore—even without an account! And if you do sign up for a free account, you can interact with these emails, customize them, and create your own simulated phishing campaigns.

5. AI-Powered Conversational Phishing

How It Works

Even scarier than convincing emails, should you respond to a phishing attempt, AI-driven chatbots can seamlessly pick up the conversation. These bots keep the conversation flowing naturally and subtly push you towards clicking on a malicious link or sharing sensitive information.

AI can rapidly parse previous conversations to deliver timely and believable responses, analyzing and mimicking natural human communication patterns to make the interaction feel incredibly authentic.

Scam Objective

This sophisticated approach is designed to bypass traditional email filters that typically scan for obvious threats, such as malicious links and attachments. After a few back-and-forth exchanges, the malicious payload is delivered when the victim's technical and social defenses are lowered.

Try It Out Yourself

To understand how these advanced phishing techniques work, you can experience them firsthand through PhishAI, a conversational phishing engine developed by CanIPhish. PhishAI allows you to harness AI and simulate this advanced phishing technique, giving you insights into how scammers operate and helping you to better protect yourself. You can explore this tool using our Phishing Simulator.

6. AI-Driven Investment Scams

How It Works

AI-driven investment scams leverage sophisticated algorithms and machine learning techniques to deceive investors on a massive scale. These scams usually target cryptocurrency and stock trading.

Scammers use AI to create fake social media profiles, forums, and websites that spread convincing misinformation about investment opportunities. AI can also be used to manipulate stock prices through tactics like astroturfing.

Astroturfing involves creating a false appearance of grassroots support or opposition, and the term itself is derived from "AstroTurf," a brand of artificial grass, implying that the movement is fake and manufactured. Thousands of fake accounts flood the internet with coordinated messages to generate false hype or fear, making it seem as though there is a genuine buzz or concern around a particular stock or cryptocurrency.

Additionally, AI can simulate real-time trading activities, making fraudulent investment platforms appear legitimate.

Example: Pump-And-Dump Crypto Scam Using Astroturfing

Scam Objective

The main objective of AI-driven investment scams is to manipulate market perceptions and investor behavior for financial gain. AI is particularly effective at this because it can quickly generate and spread highly convincing yet false information.

By creating the illusion of widespread support or opposition for a particular investment, scammers can drive market prices up or down. This artificial market manipulation tricks real investors into making decisions based on false data, allowing scammers to pr fit by buying low and selling high. The scalability and efficiency of AI make these scams more dangerous and difficult to detect than traditional methods.

A common example of an AI-driven investment scam is the "pump-and-dump" scheme in the cryptocurrency market. Let's break down each step:

1. Find A Vulnerable Cryptocurrency: Scammers select a low-liquidity cryptocurrency, which means it is relatively unknown and not widely traded. This makes it easier to manipulate its price.
2. Astroturfing Campaign (The Pump Phase Begins): Using AI, scammers create thousands of fake social media profiles and accounts on forums. These accounts start posting positive messages about the selected cryptocurrency, spreading rumors of a new partnership, tech breakthroughs, or an impending price surge. The coordinated effort makes it appear that there is a significant buzz around the cryptocurrency.
3. Hype: As the astroturfing campaign intensifies, more real investors begin to notice the cryptocurrency and, believing the hype, start buying in. The increased demand drives up the price.
4. Artificial Inflation: AI-driven trading bots might also be employed to simulate high trading volume, further convincing investors that the cryptocurrency is a hot commodity.
5. Dump Phase: Once the price reaches a peak, scammers sell off their holdings at inflated prices. This sudden influx of sell orders causes the price to crash.
6. Aftermath: Real investors who bought into the hype are left holding cryptocurrency worth nothing, often using significant amounts of money. Having sold at the peak, the scammers walk away with substantial profits.

If you're eager to learn more about how pump-and-dump scams work, Investopedia does an excellent job explaining the scam in more detail in their article titled: "How Does a Pump-and-Dump Scam Work?"

Wrapping Up

So, it's clear: AI isn't just something that tech giants are taking advantage of; it's here and available for you, me, and scammers alike. As AI becomes more accessible, so too do the opportunities for its misuse.

We've demonstrated just how quickly a simple scam can transform into something alarmingly convincing with a bit of AI magic. Now, armed with knowledge about the prevalent scams in 2024, you're better equipped to recognize and resist these high-tech tricks.

Frequently Asked Questions

What is the quantum AI scam?

Quantum AI scams trick people into investing in fake quantum computing technologies, promising enormous returns. Scammers are playing on the use of buzzwords like "quantum computing" and "AI" to create a sense of legitimacy and excitement. Remember to "DYOR" — Do Your Own Research!

What are AI phone scams?

AI phone scams involve scammers using AI-generated voices to mimic real people, like a loved one or a trusted official. These calls sound incredibly convincing, aiming to steal personal information or money. Be cautious and verify any unusual requests.

How to protect yourself against AI scams?

Educate yourself. Stay updated on the latest AI scams and security measures. Be skeptical of unsolicited messages or calls, and verify their authenticity independently. A simple verification technique is to contact the person or organization directly using a known, trusted method. For example, if you receive a suspicious email or call, don’t use the contact information provided in the message. Instead, look up the official contact details and reach out to confirm the legitimacy.

Are deepfakes hard to detect as fake?

Yes, deepfakes are becoming increasingly hard to detect. Advances in AI technology make them highly realistic, both visually and audibly. It's crucial to stay informed about these developments and have a healthy skepticism about the authenticity of suspicious content.