AI's increasing involvement in the financial sector is raising concerns, evident in the growing number of complaints recorded by the Consumer Financial Protection Bureau. The surge in robo scam texts, particularly those related to banks, spiked by 37% to 19.3 billion in 2023. Among the emerging financial threats is "card not present" (CNP) fraud, constituting 73% of all card payment fraud in 2023. CNP fraud involves unauthorized transactions without the physical card, posing a significant risk to consumers, especially in the realm of online shopping.
Guy Bauman, CMO & co-founder of IronVest, highlighted the simplicity of CNP fraud, emphasizing the scammers' need for credit card numbers, personal identifying information, or security codes. To counteract this, consumers are turning to virtual credit cards. These cards generate new numbers for online transactions, ensuring security by disconnecting them from the actual card details. Additionally, virtual cards may offer features like spending limits and the ability to freeze or unfreeze cards.
However, AI is not only impacting financial transactions but also posing threats through voice cloning scams. Experts predict an increase in AI-powered voice-cloning attempts targeting executives and banks, potentially infiltrating accounts. This extends to scams like the "grandparent scam," where AI is used to make schemes more advanced, as seen in the rise of AI-powered family emergency scams in 2023.
Furthermore, the rise of AI in manipulating information raises concerns about the resurgence of "fake news." Tech experts warn that AI can be harnessed to create more convincing and manipulative content. As the 2024 election approaches, cybercriminals are expected to leverage AI in robocalls, robotexts, and social media to spread misleading information, posing as official sources and impacting election outcomes. Vigilance and caution are emphasized as consumers navigate an online landscape increasingly infiltrated by sophisticated AI-driven tactics.
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